Us Makes A Declaration Against China

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The US has declared China as a currency manipulator for devaluating the Chinese yuan.

From Axios:

U.S. Treasury Secretary Steven Mnuchin on Monday night declared China to be a currency manipulator, just hours after the Chinese government allowed the yuan to slip below a 7-to-1 dollar ratio for the first time in over a decade.

Why it matters: This is a further ratcheting up of trade tensions between the two countries.

How it works: Under a 2015 law, in order to be a currency manipulator, a country needs to spend 2% of GDP on currency manipulation over a 12-month period. China is not doing this. If anything, China was keeping the yuan artificially strong until Trump ratcheted up the trade war on Thursday.

 

Read more @ axios.com

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