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Published: Thu, April 20, 2017
Global Media | By Abel Hampton

Trump defends about-face on labeling China a currency manipulator

Trump defends about-face on labeling China a currency manipulator

"Taiwan has a track record of asymmetric foreign-exchange interventions, highlighting the urgency of the authorities limiting foreign-exchange intervention only to circumstances of disorderly exchange-market conditions and making foreign-exchange operations more transparent", the report said.

This was the Trump administration's first release of the twice-yearly report, which evaluates the foreign exchange policies of major USA trading partners. He said he had changed his mind on China.

The report uses three criteria - a significant bilateral trade surplus with the U.S.; a material current-account surplus; and involvement in persistent one-sided intervention in the foreign-exchange market - to determine whether a trading partner is to be named a currency manipulator.

U.S. President Donald Trump has no "red line" in dealing with North Korea, but he is ready to take "decisive" action when it is deemed appropriate, the White House said Monday.

The declaration also came days after Trump - in a turnabout from his campaign stance - declared in an interview that his administration would not label China a currency manipulator, which could have triggered investigations.

"China will need to demonstrate that it lacks of intervention to resist appreciation over the last three years represents a durable policy shift by letting the [renminbi] rise with market forces once appreciation resume".

Asked during a news conference Wednesday whether he thought he could negotiate a deal with Chinese President Xi Jinping over his nation's currency practices, Trump said, "We're going to see, we're going to see about that". This was the second call Yoo made to Mnuchin, who took office in February.

Korea's trade surplus with the USA was $27.7 billion at the end of previous year and the current account surplus is equivalent to 7 percent of the nation's GDP.

"I think you see China playing a much more active role with respect to North Korea both politically and economically, that they can continue to apply pressure to achieve results", he said.

"They're not currency manipulators", Trump told The Wall Street Journal, explaining Beijing had not manipulated the yuan for months.

The next report by the U.S. Treasury will be in October.

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