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Mark Sobel argues that China needs to reform its growth model and acknowledges concerns about its trade practices and currency policy.
He highlights that the RMB is undervalued and managed by authorities, suggesting that a significant acceleration in currency appreciation would be the correct and beneficial course for both domestic and global markets.
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Sobel previously observed that the U.S. Treasury's most recent FX report did not label China as a currency manipulator and welcomed its approach to transparency, according to a recent article. In commentary on Japan, he argued that Japanese FX intervention was largely cosmetic and did not address fundamental policy issues. These assessments provide context for his ongoing analysis of currency valuation and intervention policies.