EDL Capital, which manages about $1 billion, said factors weighing on the yuan include geopolitical tensions driving Western countries to re-home supply chains that will starve China of foreign investment. China’s labour market has also grown less competitive versus other Asian countries such as Vietnam and India, while a post-pandemic recovery has sputtered and foreign currency reserves “might be lower than what they are believed to be,” it said.
AKA, their people are starting to get paid a bit better than other more easily exploited people in some other countries.
That is hopefully the good part of the story, but a growing number of Chinese don’t find work at all, especially the youth. The government even refuses to release the unemployment data.