Treasury to No Longer Designate China as Currency Manipulator

WASHINGTON — The Trump administration is expected to remove its designation of China as a currency manipulator two days before the United States and China sign an initial trade agreement.

The Treasury Department is expected to release its long delayed currency report on Monday afternoon, offering its first public analysis of China’s currency practices since it tagged China as a manipulator in August at the direction of President Trump. The report is expected to outline some of the commitments that China has made to improve transparency around its management of the renminbi.

As part of the trade deal that Mr. Trump and Chinese leaders will sign on Wednesday, China and the United States are expected to agree that they will avoid devaluing their currencies to achieve a competitive advantage for their exports.

Mr. Trump has long been critical of China’s currency practices, arguing that it weakens the renminbi to make Chinese exports cheaper in the United States. Mr. Trump believed that China had turned to that practice in August, when it allowed its currency to weaken, in an attempt to blunt the impact of tariffs he imposed on Chinese imports.

The move to label China a manipulator had not been done since 1994 and it is largely a symbolic action.

Mr. Trump had promised as a presidential candidate to slap the label on China, though the Treasury secretary, Steven Mnuchin, did not do so in the first five reports that his department issued. Mr. Mnuchin had been hesitant to use the label because China did not meet Treasury’s criteria for currency manipulation; however, he used his discretion to do so at the urging of Mr. Trump.

Senior Chinese officials arrived in Washington on Monday to put the finishing touches on the trade agreement, which will be signed at the White House on Wednesday.

The White House and the Treasury Department declined to comment.

Be the first to comment

Leave a Reply

Your email address will not be published.