The United States has refrained from labelling China as a “currency manipulator” in a move which may help defuse escalating tension over trade between the two countries.
President Donald Trump has previously accused China of keeping its currency weak to make exports more competitive.
He argues that the growth in Chinese exports to the U.S. has destroyed American jobs.
He has ordered tariffs on more than 250 billion dollars of Chinese exports to try to stem the US’s growing deficit with China.
However, at meetings of the International Monetary Fund in Bali, Indonesia last week, China’s Central Bank Governor Yi Gang said Beijing would not engage in “competitive devaluation” or use the exchange rate as a “tool to deal with trade frictions”.
