Although the US Treasury has put China on its monitoring list along with Germany, Japan, South Korea and Switzerland, it announced that no major trading partner of the United States, including China, manipulated their currencies.
Such a stance corroborated with President Donald Trump who acknowledged recently – despite previous accusations of his that said the contrary – China hadn’t kept its yuan currency artificially low against the US dollar to make Chinese exports more competitive, therefore allegedly “stealing” American manufacturing jobs.
However, China’s monetary policy is to remain under “special attention” from the Treasury whose latest report to Congress stressed on the fact that “bilateral trade imbalances with many of our major trading partners have grown to very large levels.”
Indeed, the report read, China‘s goods trade surplus with the United States over the four quarters through June 2017 was USD 357 billion, by far the largest of any major trading partner of the United States.
Instead of direct confrontation however, the Trump administration has opted – so far – for a deepening continuation of the US-China Comprehensive Economic Dialogue in spite of Treasury’s concern over “the lack of progress made.”