An interview with Lei Sihai, author of a new book 'The Great Decisive Battle: the Imminence of Sino-US Currency War.'

Lei Sihai, author of 'The Great Decisive Battle: the Imminence of Sino-US Currency War.' [Photo: weibo.com]

The United States has become more and more defensive against China because of its rapid development and the change of the comparison of strength between the two countries. "China Threat" theory increasingly attracts much more attention from the US media. Chinese political and economics author Lei Sihai believes that the United States is actively pursuing a "currency war" against China through a puppetry of elaborate political, military and media maneuvering. Using financial instruments as "direct weapons," Lei claims that the United States is gearing up to engage China in a currency battle come 2015 in his new book The Decisive Battle: the Imminence of Sino-US Currency War. The author shared his thoughts on the subject matter and his book in the following interview to better express his viewpoints to potential readers.

Q: Could you briefly explain how a currency war is brewing against China?

L: A few days ago, one of my Chinese American friends sold his apartment in Beijing, which he bought, but held under his domestic relatives' name, in 2008. At that time, the exchange rate was 1USD / RMB 7, but today the rate is 1 USD / RMB 6.2. He has made USD 700K by selling this apartment, which was only worth USD 200K if we account for the appreciation of the RMB and housing prices rising. My friend also told me that he sold his apartment to achieve "bottom fishing." At that time, China was in the midst of a financial crisis, during which the RMB depreciated and the price of domestic assets decreased sharply. If we assume my friend as billions or even trillions of foreign capital, the United States will despoil China's numerous assets. This is the so-called currency war.

Q: Does the US put forth its supposed strategy for the currency war?

L: I think so, but it's impossible to see any public statements in official documents from the White House or the Federal Reserve. However, we can get this answer through its policies. The first policy is a stress test designed by the Federal Reserve.