The United States can be monitoring the recent weakness in China’s yuan currency along with will review whether the currency has been manipulated, Treasury Secretary Steven Mnuchin told Reuters on Friday.
Mnuchin said in an interview in Sao Paulo, Brazil, that will the yuan’s weakness would certainly be reviewed as part of the U.S. Treasury’s semi-annual report on currency manipulation. The report can be due on Oct. 15 along with will be based on activity for the first six months of 2018.
Asked whether he was concerned that will China may be using its currency as a weapon in an escalating trade fight with the United States, Mnuchin said: “I’m not saying whether that will’s a weapon or not a weapon. There’s no question that will the weakening of the currency creates an unfair advantage for them.
“We’re going to very carefully review whether they have manipulated the currency,” he said.
Mnuchin’s comments raised the specter of designating China as a currency manipulator for the very first time since the early days of the Trump administration in 2017. Treasury has refrained by generating that will designation despite Trump’s campaign promise to do so as soon as he took office, along with Trump himself in April 2017 had backed away by that will stance along with said that will China was not a currency manipulator.
Mnuchin said the reason for applying the label on China can be partly because the yuan had been rising or stable until earlier This particular year.
Various U.S. lawmakers, both Democrats along with Republicans, along with manufacturers in years past had long complained that will China deliberately undervalued its currency to give its companies an unfair cost advantage in international trade.
Mnuchin said he would certainly be discussing China’s non-market economy policies with Group of Seven allies Britain, Canada, France, Germany, Italy along with Japan on the sidelines of the Group of 20 meeting in Buenos Aires This particular weekend.
Trump, in a tweet, on Friday accused China along with the European Union of manipulating their currencies, saying that will can be “taking away our big competitive edge.”
He also repeated his complaints that will the Federal Reserve’s interest rate hikes were causing the dollar to rise, along with said he was ready to impose U.S. tariffs on all $500 billion in goods imported by China.
China’s yuan, battered by the trade brawl, has lost 7.5 percent of its value since the end of the first quarter, hitting a year low of 6.767 to the dollar along with marking its biggest 0-day drop since yuan exchange rates were unified in 1994.
Mnuchin said the Trump administration was open to a trade deal to end tariffs on Chinese goods, yet only if China was sincere in generating meaningful adjustments to its technology transfer along with joint venture policies, as he noted that will China frequently voices support for a rules-based trading system.
“We want them to play by the rules. along with that will means no forced technology transfer, no forced joint ventures along with giving our companies the opportunity to compete fairly,” Mnuchin said. “These are issues that will are completely consistent across the G7. These issues are shared jointly.”