US Stops Short of Calling China a Currency Manipulator, But Slams Its Lack of Transparency—What It Means for Global Trade

Recently, the U.S. decided not to label China as a currency manipulator in a new Treasury report. However, it did point out that China lacks transparency in its currency policies compared to other major trading partners.

This report, which is released twice a year, is crucial as the U.S. seeks to negotiate a trade deal with China. The intention is to avoid a brewing trade war. A Treasury official hinted that future evidence might lead to a different conclusion regarding China’s currency practices. A definitive decision will be made later this year about whether China is manipulating the renminbi, or RMB.

Back in 2019, during President Trump’s first term, China was labeled a currency manipulator for the first time since 1994. Treasury Secretary Scott Bessent stated that the U.S. is taking a firm stand against trading practices that create imbalanced relationships. He emphasized that all available tools would be used to combat unfair currency practices.

The U.S. and China are trying to improve relations. Trump recently described a call with China’s Xi Jinping as “very positive.” They have plans for upcoming trade talks aimed at resolving tariff issues and global supply chains of rare earth minerals.

To facilitate these discussions, Trump has temporarily reduced tariffs on Chinese goods from 145% to 30% for 90 days. In response, China has lowered its taxes on U.S. goods from 125% to 10%. This back-and-forth has caused significant fluctuations in global markets. It shows just how interconnected international trade is today.

According to a recent survey by the Pew Research Center, over 70% of Americans view China negatively due to trade practices and human rights concerns. This highlights the tension surrounding the U.S.-China relationship. As both countries navigate these complex issues, staying informed is critical.

For more insights on international trade policies and their impact, you can refer to this [Treasury Department report](https://home.treasury.gov/). Understanding the economic landscape is essential in times of uncertainty.

Source link

U.S. Department of the Treasury, China, Donald Trump, Scott Bessent, International trade, General news, Asia Pacific, Tariffs and global trade, Steven Mnuchin, Politics, Washington news, Business, World news, Xi Jinping, Business ownership, World News