US Drops China "Currency Manipulator" Label Ahead of Phase One Trade Deal.
Making Nice: Reversing a decision it took last August, the US said it was rescinding the "currency manipulator" label it placed on China. Washington said Beijing had agreed to refrain from devaluing its currency - the Yuan - in order to make its goods cheaper for foreign buyers.
"China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability," US Treasury Secretary Steven Mnuchin said. "In this context, Treasury has determined that China should no longer be designated as a currency manipulator at this time."
This development comes as the two countries are expected to sign "Phase 1" of a comprehensive deal this week to decrease tensions in a trade war that has been raging since 2018. BBC
When Titans Collide: The trade war is not yet over - only the first part of an accord could be signed this week, and the sequel to this truce might not even materialize before this year's US election, as President Donald Trump recently said. But the fact that the world's two largest economies, relations between whom have become enveloped in increasing hostility and distrust, came to terms to sign on to at least a part of a trade deal is an accomplishment in itself (even if it's a deal neither side is reportedly enthusiastic about). How did the US and China settle on a trade deal neither side wanted? Here's a deep-dive.
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