According to Business Insider, the Chinese yuan has experienced troubles since the beginning of this year. Since January 2023, the yuan has depreciated by about 5% against the US dollar and may drop to 7.6 by year-end. Some analysts believe that this significant decline is due to Beijing's insufficient measures to boost the economy. Others think that this is the case due to the local business community's poor engagement with the ideas of China's Communist Party leader Xi Jinping. Simply put, neither reason restores investor confidence. A recent Bloomberg survey shows that markets expect the offshore yuan's exchange rate to reach 7.6 against the dollar. Unlike its mainland counterpart, the offshore yuan is used by investors and businesses outside mainland China and has fewer governmental restrictions. Every day, the People's Bank of China sets a trading range for the mainland yuan, while the offshore yuan is pegged to a floating exchange rate. Beijing intervenes when the difference between mainland and offshore yuan becomes too large. For example, in an attempt to tighten the offshore yuan exchange rate, the Chinese authorities sold US dollars and bought the yuan, making it pricier to short the currency. However, the root of the problem lies in China's weak economic performance and the gloomy outlook for the country's economy. For example, the country is suffering from a crisis in the real estate market, a decline in manufacturing and retail trade, high youth unemployment, and consumer price deflation.