Published: Mon, April 17, 2017
Economy | By Melissa Porter

Trump admin. declines to brand China a currency manipulator

This lead to the Opposition Democratic party leaders slamming the Trump Administration for going back on its poll promise.

"Candidates are always bombastic on the campaign trail — and Trump especially. It is no longer obsolete". Russia's support for Syrian President Bashar Assad and Trump's newfound commitment to militarily countering any chemical weapons attacks also is proving hard to square.

The U.S. on Friday stopped short of branding China a currency manipulator in an annual foreign-currency report from the Treasury while urging the world's second-largest economy to let the yuan rise with market forces and embrace more trade.

However, the U.S. Treasury States did not name Taiwan as a currency manipulation nation in the report.

A day earlier, Trump had said that the U.S. -Russia relationship are at a low point.

In a statement, the Treasury said the findings and recommendations of the Report are meant to combat potentially unfair currency practices and support the growth of free and fair trade. "Expanding trade in a way that is freer and fairer for all Americans requires that other economies avoid unfair currency practices, and we will continue to monitor this carefully", said Treasury Secretary Steven Mnuchin.

"The missile blew up nearly immediately", the US Defense Department said of the early-morning launch from near Sinpo on the North's east coast.

—Abandoned his vow to label China a currency manipulator.

The U.S. business community should not be used as a "bargaining chip", said James Zimmerman, a Beijing-based lawyer and the former chairman of the American Chamber of Commerce in China.

Adding to Chinese unease, President Trump said last Thursday that "the problem of North Korea" would be "taken care of".

During his presidential campaign, Trump often claimed that China was manipulating the value of its currency to boost its exports, a policy that cost the United States manufacturing jobs.

The Treasury did not alter its three major thresholds for identifying currency manipulation put in place a year ago by the Obama administration: a bilateral trade surplus with the United States of $20 billion or more; a global current account surplus of more than 3 percent of gross domestic product, and persistent foreign exchange purchases equal to 2 percent of GDP over 12 months.

This, however, has not reduced trade friction as President Donald Trump maintains his administration will seek to address trade imbalances.

While Washington had a "wide array of tools" at the president's disposal, "for this particular case, if they (North Korea) took the time and energy to launch a missile that failed, we don't need to expend any resources against that".

Over the last decade, China's effective exchange rate has appreciated more than any other major currency, rising a total of more than 40 percent, said David Dollar, a senior fellow at the Brookings Institution.

Those imbalances include its $65 billion goods trade surplus with the United States a year ago, and what the department calls "the world's largest current account surplus at close to $300 billion".

But reflecting the views of most economists, Treasury concluded that China has recently been intervening to do the opposite - to keep the renminbi from falling against the dollar and other currencies.

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