Meeting between U.S. President and Chinese President has been announced last week and since then China is preparing to position itself in a positive way for the encounter ahead.
On one side Trump has repeatedly suggested that the China has reason for the downfall of its currency while China is doing the best to protect its currency from falling further.
The Renminbi might have fallen against all basket of currencies but, it has gained against dollar.
“Ahead of the Trump-Xi summit favorable optics may have been a consideration,” said Tim Condon, head of Asia research at ING Financial Markets.
To present itself more positively, a key move by China is to keep the currency stable as it was opening the ways up for domestic bond market and the fund management sector for other countries, Shen Jianguang, chief economist at Mizuho Securities Asia said.
“President Xi is in a position to say credible, useful things about Chinese investment in the U.S.” he said at a discussion at the Center for Strategic & International Studies in Washington D.C. on Friday.
“One might argue he will seek to control the incoming (U.S.) president because he had a pretty good track record under the previous president of managing the relationship quite well and seemingly outfoxing the previous president on certain issues,” said Johnson.