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Brad Setser questions whether the actions of Taiwan's central bank and its non-prudential insurance regulations, particularly those that discourage hedging, could be considered a form of manipulation under the 88 law.
Setser expresses uncertainty about what else these activities might represent if not manipulation.
Setser has recently analyzed the risks tied to external economic dependence, noting that German auto exports to China have dropped sharply, putting a portion of GDP at risk. He has also written that European leaders consider current trade relations with China unbalanced and unsustainable. These observations add context to his scrutiny of Taiwan's central bank activities.