China is not manipulating currency, but the country’s currency system lacks transparency, says US Trade Minister Steven Mnuchin. China’s exchange rate practice and the weakening currency yuan are of “special concern,” said Mnuchin on Wednesday.
“This poses major challenges in achieving a fairer and more balanced trade. We continue to monitor the situation and assess China’s currency practices, including ongoing discussions with the country’s central bank”, said Mnuchin.
Mnuchin is concerned that the weakening of the Chinese currency is helping to increase the US trade deficit with China.
He has decided to put China and the five countries Germany, India, Japan, South Korea and Switzerland on a list to be followed by Washington.
US authorities undertake this type of review every six months. Countries that do not meet the US criteria will be stamped currency manipulator – a stamp China once again avoids.
President Donald Trump has accused China of currency manipulation – an accusation he made in July. The International Monetary Fund (IMF) reversed and said there is no evidence that the country manipulates its own currency to secure trade benefits.
