Trump pulls his punches on China and Germany

21 April, 2017, 19:56 | Author: Leticia Walters

Trump, in a Wall Street Journal interview, said China had not manipulated the yuan for months, while accusing nations that he didn't identify of devaluing their currencies and saying the United States dollar is getting too strong.

China, Germany, Japan, Korea, Switzerland and Taiwan remained on a previously established watch list of countries in the Trump administration's first report on currency values.

One of Donald Trump's most prominent trade advisers has rounded on the president for his U-turn on branding China a currency manipulator.

The Treasury also warned that it will scrutinize China's trade and currency practices very closely and called for faster opening of China's economy to United States goods and services and a shift away from exports to more domestic consumption.

The decision was expected after President Donald Trump this week reversed himself and said China was not a currency manipulator.

The report came after China data showed its surplus with the United States was almost unchanged in the first quarter compared to a year earlier at $49.6 billion, and cited China's market protection as an impediment to a balanced trade relationship. The Treasury report recognized what many analysts have said over the past year, namely that China has recently intervened in foreign exchange markets to prop up the value of its yuan currency, not push it lower to make Chinese exports cheaper.

"In this status, China will have to prove that the lack of intervention to curb the growth rate of the national currency within three years has been a sustainable policy", the U.S. Treasury Department emphasized.

China met only one of the three criteria required to be labeled a currency manipulator - a large trade surplus with the United States - while Germany also met a second: a current account surplus amounting to more than three percent of the nation's economic output.

That "distortion in the global trading system. imposed significant and long-lasting hardship on American workers and companies".

On Friday, the Treasury Department issued its first report on the currency practices of America's trading partners.

Because it had been more than two decades since any country had been named a currency manipulator, Congress in 2015 changed the law to require Treasury to put countries on a less onerous "monitoring" list. Such partnerships would likely also have to clear national security hurdles.Sceptics also wonder if Chinese cooperation in redressing the trade imbalance will be limited to areas that serve Chinese needs, such as increasing imports of USA gas, oil and coking coal.

Increased demand "would place upward pressure on the euro. and help reduce its large external imbalances", increasing domestic consumption, including of imported goods.

"They're not currency manipulators", he said in an interview. The Treasury Department continued to call for reforms to the labor market that would improve Japanese workers' productivity, along with fiscal and monetary support for the Japanese economy.

Recommended:

  • Mbappe will be at Monaco for another year - Giuly

    Mbappe will be at Monaco for another year - Giuly

    Prince Albert of Monaco, who remains involved behind the scenes at the club, told RMC he hoped Mbappe would stay for another season.

    Europa final would be 'perfect' end to season, says Mourinho

    We equalised, but couldn't score a second goal. "Some players don't know what makes me trust a player but Marcus I trust". United boss Jose Mourinho has confirmed that Argentina keeper Sergio Romero will start ahead of David de Gea.

    Celtics embarrassed by 8-seed Bulls, down 0-2 heading to Chicago

    It also helps that Rajon Rondo is playing like vintage Rondo, the point guard who quarterbacked the Celtics' title run in 2008. The Bulls were plus-17 in total rebounds, including a 20-12 edge in offensive boards that lead to 23 second-chance points.
  • 50 years later: South Bend runner finishes Boston Marathon, honors first woman

    50 years later: South Bend runner finishes Boston Marathon, honors first woman

    She persevered and finished the race, and she's since been on a mission to create opportunities and equal sport status for women. It was the Boston Marathon yesterday, and it marks 50 years since an incredible event for runners and women everywhere.
    Rain, thunderstorms in forecast as the weekend approaches

    Rain, thunderstorms in forecast as the weekend approaches

    It will stay cool with high temperatures in the upper 50s and a northeast breeze up to 10 miles per hour . It's still early, but the forecast is for rain showers spreading inland during the day.

    GM halts operations in Venezuela after factory is seized

    The Maduro government's seizure of US -based General Motors' sole factory in Venezuela is likely to add to Tillerson's worries. Unemployment is set to surpass 25%, and its people have suffered from widespread shortages of food and medicine.
  • France promises proof Assad regime behind chemical attack

    Last week Mattis reiterated warnings that further chemical weapons use by Assad will be met with fresh United States action. On Wednesday, OPCW said that sarin or a similar banned toxin was used in an attack in Idlib.

    Here are the first images from Game Of Thrones season 7

    And with Cersei on the Iron Throne , there is sure to be some heavy , heavy stuff coming down this season. Fans have since been speculating that the hero is learning about his true parentage at Winterfell.

    South Korea on heightened alert as Russian Federation denies troop movements toward North

    However, Reuters quoted us officials as saying that they were aware of a higher-than-usual level of activity by Chinese bombers. There is concern the North will use the next big day on its calendar, April 25, to show off its strength.
  • Gerard Pique confident Barcelona can lift itself up from Juventus loss

    Madrid will likely have the return of forward Gareth Bale, who missed the game against Bayern because of a muscle injury. This might be the title decider with Barcelona needing all three points to keep their hopes alive.

    Oil Tumbles Most in Six Weeks as U.S. Gasoline Supplies Advance

    U.S. gasoline stocks posted a counter-seasonal build of 1.5 million barrels, because of rising refining activity. One factor helping boost stocks has been USA crude production, which has climbed by 482,000 b/d this year.
    Pro basketball: Cavs' record comeback beats Pacers

    Pro basketball: Cavs' record comeback beats Pacers

    We played a great first half, but then they really got aggressive in the second half. "We have to do a better job communicating". The largest halftime deficit overcome to win a playoff game had been 21 points by Baltimore against Philadelphia in 1948.


Popular

Runoff in Georgia House race could test Trump
President Donald Trump said he was "glad to be of help" after a Democrat failed to win 50% of the vote in a Georgia election. While no poll showed Ossoff getting to 50 percent (even with undecided voters allocated), he was dominating the early vote .

Trump signs order to tighten H-1B visa norms
The changes link with Trump's " Buy American, Hire American" stance, which won him the Presidency back in Janaury amongst a subsequent rise in populism.

Sweet Drinks Linked to Dementia
The team from Boston University School of Medicine looked at ten years' worth of data from more than 4,300 people. Research has long shown that artificially sweetened drinks are not health drinks.

Spicer says Trump is "still under audit"
But CREW's Bookbinder says it's important to release Trump's returns anyway, as other presidents have been doing for decades. Protesters across the US demanded one thing on Saturday - that President Trump release his tax returns.

North Korea rolls out missiles during massive parade, threatens pre-emptive strike
Kim Il-sung's birthday is known as the "Day of the Sun" and is the most important national holiday in North Korea. However, the display did show that North Korea is still going right ahead with their missile development program.