U.S. again declines to name China a currency manipulator

Updated 2018-04-15 11:39:56 Xinhua

Amid growing trade tension between China and the United States, the Trump administration has again declined to label China a currency manipulator.

The U.S. Treasury Department, in its semi-annual report to the Congress, found none of the six major U.S. trading partners placed under monitoring – China, Germany, Japan, South Korea, Switzerland and India -- was manipulating its currency. India is new to the Treasury list.

"We will continue to monitor and combat unfair currency practices, while encouraging policies and reforms to address large trade imbalances," U.S. Treasury Secretary Steven Mnuchin said in a statement on Friday.

It was the third such Treasury report issued by the Trump administration since taking office about 15 months ago. None of the reports labeled China a currency manipulator, contrary to President Donald Trump's rhetoric on the campaign trail during the 2016 election when he repeatedly bashed China as a currency manipulator.

The Treasury report, titled Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, said China has an "extremely large and persistent" bilateral trade surplus with the U.S., with goods trade surplus standing at 5 billion in 2017. But it noted that China runs trade deficit with many other economies.

China's current account surplus expanded in nominal terms to billion, or 1.4 percent of the GDP, in the second half of 2017 from billion, or 1.5 percent in the second half of 2016. "But it remains significantly below its 2007 half year peak over 10 percent of GDP," said the Treasury report.

The last time the U.S. Treasury labeled a country a currency manipulator was in 1994 when China was named.

The Treasury report also noted that since the beginning of 2018, the Chinese currency yuan, also known as RMB or renminbi, has continued to strengthen against the dollar, up 3.7 percent as of the end of March.

Speculation was rife last week that China may depreciate its currency in case the Trump administration imposes punitive Section 301 tariffs on some 0 billion imports from China following an investigation into China's intellectual property policies and practices.

Yi Gang, governor of the People's Bank of China, the central bank, said on March 11 that China had no intention of manipulating its exchange rate to try to boost trade.

"Our exchange rate system is demand and supply determined … basically, the central bank has not had an intervention for a long time and this serves the Chinese people well," said Yi, who assumed the current post last month.

Yi is expected to be in Washington in the coming days for the 2018 IMF/World Bank Annual Spring Meeting. It's unknown if he is scheduled to meet Mnuchin and other senior U.S. officials over the current trade tension between the world's two largest economies.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 22 2018 10:33:15

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 22 2018 10:33:15

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 22 2018 10:33:15

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords