In a latest review of its currency manipulator watchlist, the United States did not add China but the list is a curious one to say the list.
With no China in the mix, the US has just added Singapore, Ireland, Vietnam, Italy and Malaysia to it’s famous ‘currency manipulator’s watchlist.
The list is America’s review of countries that allegedly devalue or tinker with the actual value of their currency to gain a upper hand with the US in bilateral trade.
However, the list does not mention China either on the watchlist nor exempted from the list.
President Trump has been critical of China’s government on how it allegedly ‘manipulates’ its currency to give its exports to the US an edge against US goods going to China. The US has in the past argued that by continuously ‘undervaluing’ its currency, Chinese exports to the US becomes cheaper, out-competing with American goods.
China has repeatedly denied the allegations. Earlier this week, Mr. Bismarck Rewane, chief executive of the Financial Derivatives Company, said the current trade war between China and the US is a ‘currency’ war.
Less than two weeks ago, the US Department of Commerce added China’s Huawei Technologies Co. to it’s ‘Entry List’, a move that means Huawei is banned from doing business with any American company.
There are two implications of this latest move by the United States. It is either the US wants to further deescalate trade tensions with China or their is an active negotiation on going.
