Treasury Secretary Steven Mnuchin introduced China to the list of “currency manipulators” – it was the first time since 1994.
“Minister Mnuchin, acting on behalf of the President trump, has determined that China is a currency manipulator”, – said in the message.
It is noted that the results of this decision, Mnuchin turn to the IMF, to “eliminate unfair competitive advantages created by recent actions of China.”
“China has a long history of stimulating undervalued currency with the help of serial large-scale interventions on the international exchange market. In recent days, China has taken concrete actions to devalue its currency,” – emphasizes the Ministry of Finance of the United States.
In the Department are convinced that the context of the use of financial instruments by the Chinese government leaves no doubt that the actions of Beijing aimed at obtaining an unfair competitive advantage in international trade.
United States make the list of “currency manipulators” countries that use large-scale intervention for a sharp influence on the exchange rate of the national currency, which creates imbalances and non-market advantages in the international market. Therefore, today’s decision deepens a trade confrontation between the two superpowers.
The last time the US brought China to this list back in 1994 during the presidency of bill Clinton.
As reported last week, Donald trump has proposed to introduce from 1 September a new 10% duty on imports from China of about $ 300 billion, raising the stakes in the trade war.
This week, the Beijing mirror replied to Washington’s actions, a record devalue the yuan by 1% and bringing the exchange rate up to 7 yuan per us dollar. China also ordered their companies to suspend imports of agricultural products from the United States.
International financial institutions, including the IMF and the world Bank said tensions between the major economies of the world one of the most negative factors for future global growth.