As a reminder on Friday there was an MNI......>

CHINA: As a reminder on Friday there was an MNI sources piece which noted that

China may devalue the Yuan in the case of a trade war according to a Gov't

advisor (See Main Wire At 09:00 GMT 03/23). The article suggested that USDCNY

may centre around 6.3-6.4 in 2018 as the economy faces the possibility of a

downturn in H218 on the back of weak exports.

- The piece suggested that China is likely to devalue its currency to protect

exports if there is a full-scale trade war with the US, Zhang Ming, senior

fellow at the Institute of World Economics and Politics under the Chinese

Academy of Social Sciences, told MNI in an exclusive interview.

- While the yuan has generally strengthened against the dollar since last year,

China's policymakers have largely tolerated the gain, signalling a willingness

to address the Trump administration's criticism of its trade practices, Zhang

said. If the U.S doesn't "reciprocate" this olive branch, China will be forced

to protect its own interests, said the researcher, who is a member of the

prominent Chinese state think tank.