China's central bank denounces Washington's designation of China as currency manipulator
- 5 years ago
中인민은행 "美 환율조작국 지정에 깊은 유감…국제규칙 파괴"
China's central bank released a statement condemning the currency manipulator designation.
It's state-run media called the decision politically motivated.
Kim Mok-yeon zooms in on Beijing's response.
A day after the U.S. announced it was officially designating China a currency manipulator, the People's Bank of China released a statement denouncing the move.
The PBOC expressed deep regret, calling the decision a unilateral act based on protectionist principles that seriously undermines international rules.
It said the move will hurt the global economy, and reiterated that the designation doesnt even meet Washington's own standards of a currency manipulator.
In an editorial Tuesday, China's state-run daily tabloid Huanqiu Shibao called the decision a bluff, claiming China won't be hurt much.
It said that if it happened 2 years ago, it might cause concern that Washington would increase tariffs on Chinese goods, but since the Trump administration has enacted hefty tariffs already, the designation does not mean a lot.
It also said the U.S. is throwing a tantrum, claiming that China meets only one of the three criteria for a currency manipulator, which is that of having a significant trade surplus with the United States.
The two other criteria set by the U.S. in its law from 2015 are having a material global current account surplus and engaging in persistent one-way intervention in foreign exchange rates.
But the label announced on Monday was based on an older law, namely the Omnibus Foreign Trade and Competitiveness Act of 1988 that sets a looser standard for naming currency manipulators.
Normally, if a country is found to be manipulating its currency for a trade advantage, the U.S. Treasury is required by law to enter bilateral negotiations with that country or work through the International Monetary Fund to correct the situation.
If no solutions can be found, the President can impose various penalties such as banning the U.S. government from sending development funds to that country, or excluding it from U.S. government procurement contracts.
Kim Mok-yeon, Arirang news.
China's central bank released a statement condemning the currency manipulator designation.
It's state-run media called the decision politically motivated.
Kim Mok-yeon zooms in on Beijing's response.
A day after the U.S. announced it was officially designating China a currency manipulator, the People's Bank of China released a statement denouncing the move.
The PBOC expressed deep regret, calling the decision a unilateral act based on protectionist principles that seriously undermines international rules.
It said the move will hurt the global economy, and reiterated that the designation doesnt even meet Washington's own standards of a currency manipulator.
In an editorial Tuesday, China's state-run daily tabloid Huanqiu Shibao called the decision a bluff, claiming China won't be hurt much.
It said that if it happened 2 years ago, it might cause concern that Washington would increase tariffs on Chinese goods, but since the Trump administration has enacted hefty tariffs already, the designation does not mean a lot.
It also said the U.S. is throwing a tantrum, claiming that China meets only one of the three criteria for a currency manipulator, which is that of having a significant trade surplus with the United States.
The two other criteria set by the U.S. in its law from 2015 are having a material global current account surplus and engaging in persistent one-way intervention in foreign exchange rates.
But the label announced on Monday was based on an older law, namely the Omnibus Foreign Trade and Competitiveness Act of 1988 that sets a looser standard for naming currency manipulators.
Normally, if a country is found to be manipulating its currency for a trade advantage, the U.S. Treasury is required by law to enter bilateral negotiations with that country or work through the International Monetary Fund to correct the situation.
If no solutions can be found, the President can impose various penalties such as banning the U.S. government from sending development funds to that country, or excluding it from U.S. government procurement contracts.
Kim Mok-yeon, Arirang news.