The ongoing US-China salvo heats on!
On Tuesday, Chinese media was quick to counter US President’s labeling, “currency manipulator” against them.
In a Chinese newspaper, they described US branding as something that “deliberately destroying international order”.
The US accusation of China came after Chinese yuan fell below 7 in the exchange rate against the US dollar on Monday. The latest development signals a bigger-growing tension between the two countries with the largest economies in the world.
The US Treasury said on Monday that it has figured that the yuan downgrade is part of China’s scheme to compensate for the US’ imposition of a 10% tariff for $300 billion worth of Chinese goods.
The yuan fell 2.3% three days after Trump declared more tariffs.
Since labeling China as a currency manipulator, the US Treasury department will demand special talks to rectify the currency abnormalities and a possible penalty of excluding the manipulator from the US government dealings.