U.S. Labels China a Currency Manipulator, Escalating Trade War
2019年8月6日 6:58 JST
Treasury move follows Chinese retaliation for new U.S. tariffs
Yuan slid past 7 Monday, Trump called out a ‘major violation’
The Trump administration formally labeled China a currency manipulator,further escalating its trade war with Beijing after the country’s central bank allowed the yuan to fall in retaliation for new U.S. tariffs.
While the U.S. Treasury Department’s determination is largely symbolic, as the potential punishments are a shadow of the steps Trump has already taken against China, it underscores the rapidly deteriorating relationship between the world’s two largest economies. The move immediately roiled markets, with S&P 500 Index futures sliding more than 1% Tuesday in Asia. The yuan slid further in offshore trading.
The U.S. announcement followed a declaration by China’s central bank chief, Yi Gang, that his nation wouldn’t use the yuan as a tool to deal with trade disputes.?“I am fully confident that the yuan will remain a strong currency in spite of recent fluctuations amid external uncertainties,”?Yi said in a statement Monday.
Under the designation, Treasury Secretary Steven Mnuchin?“will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions,”?the department said in a statement Monday.
Trump called the yuan’s plunge below the symbolically important level of 7 per dollar “currency manipulation” in a tweet earlier on Monday.?And he indicated he’d like the Federal Reserve to counter the move.