1/17/2020

US Treasury’s Currency Report on China is a Case Study in Political Manipulation

"The US Treasury’s semi-annual report issued this week on the exchange rate policies of China and other major trading partners is an exercise in intellectual gymnastics. The report reiterates that China was indeed a currency manipulator, as Treasury declared in August 2019, but then states it has magically ceased to be one now that the two nations are ready to sign the “Phase One” trade deal this week in Washington.

In fact, under any reasonable reading of US law, China has refrained from manipulating its currency for the past decade or more. The administration’s declaration over the summer was more a negotiating tactic designed to pressure China to sign a trade agreement, and its reversal of that finding in the latest currency report is not based on any real change in evidence."