Two days prior to signing Phase One of the US/China trade deal, the Treasury Department announced they were removing China’s designation as a currency manipulator.
The Trump administration designated China as a currency manipulator in August 2019 when Trump accused China of intentionally weakening their currency to make their goods cheaper for sale overseas in light of the then-new tariffs.
Since August, the Treasury Department claims China has made promises to stop devaluation and to promote transparency and accountability.
While the August 2019 label as a currency manipulator received bipartisan agreement, this new move has received criticism from Democrat Senators who argue the label of “currency manipulator” should not be used as a bargaining tool in the ongoing US/China trade war.
As the signing date of Phase One approaches, I expect the Trump administration to release further details in multiple parts.