If there was a worldwide senior superlative for “most manipulative,” China would come in second place. Losing out only to Joe Goldberg. But on Monday the U.S. Treasury removed China from its official list of currency manipulators.
The Background: U.S. economists, politicians, and business owners have long accused China of intentionally devaluing the Yuan (China’s currency). By doing so, they make Chinese products relatively less expensive to foreign trading partners and help increase exports.
This practice has been going on for decades, but tensions came to a head in the summer of 2019 when the U.S. formally declared China a manipulator (the first time we had done so since 1994).
The Latest: Tomorrow, American and Chinese officials are set to sign phase one of the trade deal. As part of the agreement, China has agreed not to manipulate its currency and to be more transparent about the actions of its central bank. Other key terms include minimum Chinese purchases of U.S. agricultural goods and reform for forced technology transfer.