Move comes as the trade war between the world’s two largest economies escalates.
The US Treasury Department has labelled China a ‘Currency Manipulator,’ as the trade war between the US and the Communist State continues to escalate.
In a press release, the US Treasury Dept said “Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator. As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.”
“In recent days, China has taken concrete steps to devalue its currency, while maintaining substantial foreign exchange reserves despite active use of such tools in the past,” added the Department. “The context of these actions and the implausibility of China’s market stability rationale confirm that the purpose of China’s currency devaluation is to gain unfair competitive advantage in international trade.”
In response, the Communists said “The United States disregards the facts and unreasonably affixes China with the label of ‘currency manipulators,’ which is a behavior that harms others and oneself. The Chinese side firmly opposes this.”
China has also said that they will halt all purchases of US agricultural products by state-owned firms.
During the campaign, Trump had promised to declare China a currency manipulator, something many had been calling for for some time.
However, as some have noted, China may be manipulating their currency in the opposite direction, propping it up rather than devaluing it:
If the chinese stop propping up their currency, it will devalue more than 40% @realDonaldTrump . It’s funny that he doesn’t understand that the chinese act to prop it up. And the chinese can’t say “we are trying to hold this entire charade together while he accuses us of manip!” https://t.co/wQsBRQIits
— Kyle Bass (@Jkylebass) August 5, 2019
“If the chinese stop propping up their currency, it will devalue more than 40% @realDonaldTrump. It’s funny that he doesn’t understand that the chinese act to prop it up. And the chinese can’t say “we are trying to hold this entire charade together while he accuses us of manip!”
Trump has been tweeting about the trade war:
“Massive amounts of money from China and other parts of the world is pouring into the United States for reasons of safety, investment, and interest rates! We are in a very strong position. Companies are also coming to the U.S. in big numbers. A beautiful thing to watch!”
Massive amounts of money from China and other parts of the world is pouring into the United States for reasons of safety, investment, and interest rates! We are in a very strong position. Companies are also coming to the U.S. in big numbers. A beautiful thing to watch!
— Donald J. Trump (@realDonaldTrump) August 6, 2019
“As they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would do – And I’ll do it again next year if necessary!”
As they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would do – And I’ll do it again next year if necessary!
— Donald J. Trump (@realDonaldTrump) August 6, 2019
With neither Trump nor the Chicoms likely to back down, the decoupling of the world’s two largest economies seems set to continue.
Spencer Fernando
Photo – YouTube
