The Currency Deal With United States Is Possible
A foreign Ministry spokesman said that China has got hopes that other countries will examine the renminbi's exchange rate in the right manner. He said the same in response to the information that the United States might be finding ways in order to run away from a confrontation with China over currency.
The same matter rose again to the surface with the swearing in of Steven Mnuchin on Monday as the United States treasury secretary. Steven Mnuchin, who has labeled China to as a currency manipulator, after his confirmation by United State Senate was sworn in.
Analysts said that the conversation between US and China will be of high significance during the next 2 months this year, given that Washington DC is promptly set to give out its next report evaluating foreign exchange practices consisted by the major trading partners.
Geng Shuang, foreign Ministry spokesman who was at a regular news conference said that China government has never undegraded its currency for it to gain an export advantage. He also added that China will continue reforming its currency rate setting procedures.
Geng's words were made according to a Wall Street Journal report which the United States’ President’s administration is calculating ways to skip confronting Beijing over currency.
The newspaper reported that the United States’ commerce secretary would instead designate currency manipulation, an incorrect subsidy when he gets employed by any Nation, but not the idea of singling out China.
The newspaper, on the other hand, reported that at least the administration will avoid, for now, blaming China of currency manipulation.
During his campaign, Trump threatened to blame China the currency manipulator. But rather since then has he cooled down. During an interview last month with The Wall Street Journal, Trump said that he would not label China a currency manipulator on his 1st day in the office as he promised previously.
"I would first talk to them. Truly they are serious currency manipulators but I am not ready to do that." Trump was quoted saying.
Jin Yong, the professor at the international relations studies located in China’s Communication University, said if the new way is put in place, it will be seen that Trump is having a softer handle toward China.
Trump also said that Labelling China as being a currency manipulator would result to trade conflicts between the top 2 economies of the world and which will end by hurting everyone.
Li Haidong, the professor of the United States studies at the China Foreign Affairs University (CFAU), said that China and the United States administration are likely to involve in tough and serious negotiations in the near future given that the currency manipulator allegations would press down the China's trade interests.
Li Haidong said that there seems to exist a compromise on the both sides in the conversation on currency adding that the U.S president might still name China and other countries currency manipulators those negotiations breaks down.