China devalues the Yuan keeping its GDP numbers low

[retaxis]

China is exporter nation thats why it needs to keep its Yuan weak to have better competitive prices globally. Meanwhile India for example is an importer country so it artificially keeps its currency high so that imports become cheaper. In a what if scenario, What if China did not devalue the Yuan and India did not pump up value of rupee? (China's economy would likely be 10x that of India's)

If China did not keep its currency weak, China's nominal Gross Domestic Product (GDP) in US dollars would be higher on paper. [1]

Nominal GDP in US Dollars

• • Exchange Rate Math: GDP is counted in local currency first and then changed into US dollars. If each yuan buys more US dollars, the total dollar value of the economy goes up.
  • Global Ranking: A stronger yuan could push China's nominal dollar GDP closer to the United States. [1]

Real Economic Effects

• • Lower Exports: A stronger currency makes Chinese products cost more for buyers in other countries. Factories might sell fewer goods abroad.
  • Slower Growth: Selling fewer goods can slow down actual production and local job growth over time. [1, 2, 3, 4]

Purchasing Power Parity (PPP)

• • Local Buying Power: Economists also use Purchasing Power Parity (PPP) to measure an economy based on what money can actually buy locally. [1]
  • Already Large: China's PPP GDP is already the largest in the world because everyday items cost less inside China. Changing the official exchange rate does not change this real internal buying power. [1, 2]

 

[CallSignMaverick]

Meanwhile India for example is an importer country so it artificially keeps its currency high so that imports become cheaper.

That's simply not true


China for past year has been appreciating their currency or allowing it to appreciate. INR decline however is quite well visible.

 

[ety]

That's simply not true
View attachment 213273

China for past year has been appreciating their currency or allowing it to appreciate. INR decline however is quite well visible.View attachment 213274

China has been keeping the Yuan-Dollar exchange low for many years. It's just Yuan has been appreciating for the last few months because of the state of US economy and its financial policies.