Washington, The US Treasury Department announced on Monday that it has dropped its designation of China as currency manipulator just days before the two countries are to sign an initial trade agreement.
“China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability,” US Treasury Secretary Steven Mnuchin said in a statement, Deutsche press agency (dpa) reported.
The Trump administration roiled markets when it labelled China as a currency manipulator in August as Washington sought to pressure Beijing to meet US trade demands.
After nearly two years of tit-for-tat tariffs Washington and Beijing are set to sign a “phase one” trade deal on Wednesday.
The agreement staves off some punitive tariffs on Chinese goods and ends China’s practice of forcing or pressuring some US companies to transfer their technologies to Chinese companies, according to the US trade representative.
China will also purchase billions of dollars in US agricultural products, energy and manufactured goods.
“The Treasury Department has helped secure a significant Phase One agreement with China that will lead to greater economic growth and opportunity for American workers and businesses,” Mnuchin said Monday.
Chuck Schumer, the leader of the Democrats in the Senate, blasted Trump over the decision.
“Unfortunately, President Trump would rather cave to President Xi than stay tough on China,” Schumer said in a statement. “When it comes to the president’s stance on China, Americans are getting a lot of show and very little results.”
With China’s removal no country is on the US currency manipulator list.
Source: Bahrain News Agency