The Department of the Treasury reversed its decision on the recognition of China currency manipulator, which was adopted in August 2019. About it writes “New Time”.
This is stated in the report of the office to Congress on macroeconomic and monetary policies of major U.S. trading partners.
The Department indicated that the US and China, after lengthy negotiations agreed on the conclusion of the preliminary trade agreements. Under this agreement, China has committed itself to refrain from the devaluation of the yuan to obtain an unfair competitive advantage in international trade.
“Meanwhile, after the devaluation to 7.18 yuan per dollar in early September, 2019, the yuan subsequently increased in October and currently is at about 6.93 yuan per dollar,” the report said.
In mid-December 2019, after almost two years of confrontation, Beijing and Washington announced the agreement “the first phase” of the bargain. The 86-page document is not yet published.
The US President Donald trump has announced that it will be signed by January 15.
Under the agreement, the United States abolished the increase in duties on certain goods from China, which was scheduled for December 15. In addition, the 15% duty on goods of Chinese import value of $120 billion will be reduced to 7.5%.
Beijing, in response, promised in 2020-2021 years be increased to $200 billion of US imports agricultural products, industrial goods, energy and services. The Chinese government also agreed not to require companies to transfer technology to obtain licenses to conduct business in the country.
According to American and Chinese officials, the success of the “first phase” of the agreement will depend on the second. It is expected that it will provide for further tariff reductions.
As previously wrote ForumDaily:
August 5, 2019, the United States accused China of manipulating its currency after China allowed the yuan to fall to its lowest level in more than a decade.