US accuses China of being a currency manipulator
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 US dollar to create an unfair competitive advantage.
"Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator," US Treasury said in a statement.
"As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China's latest actions."
According to the Treasury Department, China has a "long history of facilitating an undervalued currency through protracted, large-scale intervention in the foreign exchange market" and that it has been taking "concrete steps to devalue its currency".
"The context of these actions and the implausibility of China's market stability rationale confirm that the purpose of China's currency devaluation is to gain an unfair competitive advantage in international trade," Treasury Department added.
Read more: China is the biggest obstacle to US AI advancement, half of CEOs say (TechRepublic)
In typical US President Donald Trump fashion, he took to Twitter to voice his opinion on the matter, accusing China of stealing funds from the US economy.
"China dropped the price of their currency to an almost a historic low," he wrote. "It's called 'currency manipulation.' Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
At the time of reporting, one yuan was equivalent to US$0.14.
This latest accusation by the US government adds further fuel to growing political tension between the US and China.
Last week, US President Trump announced an additional 10% tariff would be added onto $300 billion worth of Chinese imports.
The tariffs are set to be enforced from September 1 and are not part of the $250 billion worth of Chinese goods that were tariffed at 25% back in May.
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