Wall Street notched its worst day of 2019 on Monday.
The responsibility of big countries is to provide the world with stability and certainty while creating conditions and opportunities for the common development of all countries, according to the editorial. He also said China hasn't followed through on its commitment to stem the flow of the synthetic opioid fentanyl into the United States.
The Treasury Department designated China a currency manipulator after it allowed its currency to weaken to an 11-year low amid the ongoing trade war with President Trump. Mnuchin made clear he was doing President Trump's bidding after the Chinese central bank allowed its currency to decline by more than 2 percent below the psychologically important level of seven yuan, or renminbi, to the dollar.
The last time the yuan traded at the 7-level against the dollar was during the global financial crisis.
The two sides characterised last week's resurrected trade talks in Shanghai as constructive, but tensions have mounted rapidly since then, as Trump vowed to impose fresh tariffs on $300 billion in Chinese goods from September 1. In a series of tweets last week, Trump accused the Chinese regime of failing to deliver on a pledge to buy more USA agricultural products.
Bo Zhuang, chief China economist at TS Lombard, said the yuan's fall was the obvious result of "active monetary policy intervention" in response to Trump's most recent tariffs threat.
By keeping its currency undervalued, China can make its exports cheap and imports expensive, thus gaining a competitive advantage in global trade.
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The motion would have granted MPs control of the parliamentary timetable in the autumn, enabling them to prevent no-deal. One option is, as Corbyn suggested, a possible vote of no confidence in Johnson's new government.
The trade wars aren't working out very well this morning. "The timing and apparent logic for Treasury's designation of China as a currency manipulator reeks of arbitrariness and retaliation, and will inflict further damage on an already wounded relationship between China and the U.S".
To compensate for the losses, the Trump administration has rolled out up to US$28 billion (S$38 billion) in federal aid since the trade war began previous year, and the Agriculture Department to date has made US$8.6 billion of direct aid payments to farmers. Finally, the trade war is exacting enough of a toll on China that the Chinese government will have to stop propping up its currency-something that Trump believes gives China an unfair advantage.
"They don't have any meaningful tools to do anything about it, unless they just want to pile more tariffs on", he said.
The United States has labelled China as being a "currency manipulator", accusing the country of changing the rate of exchange between the yuan and the USA dollar to create an unfair competitive advantage.
Stock investors also took comfort after the Chinese central bank announced plans to issue central bank bills worth 30 billion yuan next week. And the move down in the yuan on Monday was not artificial - it was an entirely natural market response to newly imposed US tariffs.
In 2012, China really did have a long-standing practice of intervening in the markets to suppress the value of the yuan.
The Treasury Department said it would consult with the International Monetary Fund about China's falling currency, but observers said they did not expect much practical effect.
Even during the mid-2000s, when China's yuan was widely viewed to be significantly undervalued and its current account surplus approached 10% of GDP, the United States refrained from a currency manipulator designation.