US Treasury Dept. Labels China ‘Currency Manipulator’

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!”

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!”

“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!”

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

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Joe
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Joe

Good timing…Ordered my last bunch of awesome products before this implosion of China goods not being available at cheap prices.

Bruno
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Bruno

Tell me one thing of good China will do.USA is on the front line for all of us,yet our politicians in Canada blame USA for creating problems in Canada.How naïve some of the politicans in Canada are.Where is their loyalty I wader.

Shawn Harris
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Shawn Harris

Why would anyone believe that a communist country, China, bent upon becoming the largest economy in the world, would play by the rules of the global economy. China regularly steals intellectual property, Huawei rings a bell; using stolen NorTel technology to become the largest provider of communications equipment in the world. Many other corporations either have their patented technology forcibly taken from them or it is stolen by China, as a non negotiable demand for doing business in China. If that isn’t enough, China makes third world countries into debtor nations,Caribbean , African and South American; for China to to… Read more »

Eric Blair
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Eric Blair

So let me get this right… the Chinese are not going to buy US agricultural products and they are not buying Canadian agricultural products, so how are they going to feed their people? What happens if there are crop failures… could happen by drought or even shorter growing seasons.