US removes currency manipulator label on China ahead of inking of trade deal

The US has reversed its decision to brand China a "currency manipulator" as the world's two major economies prepare to conclude a "phase one" deal on Wednesday to end their bruising trade war.

President Donald Trump has repeatedly accused China of allowing the value of the yuan to fall, making Chinese goods cheaper. The US officially named China a currency manipulator in August last year when trade tensions were high between Beijing and Washington.

Trump, who blames China for a decline in US manufacturing, promised to label China a currency manipulator during his 2016 election campaign.

Announcing the revocation of China's currency manipulator status, US Treasury Secretary Steven T. Mnuchin said, "China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability."
China is a responsible big country, he said, adding that "we have repeatedly reiterated that we will not engage in competitive currency devaluation and do not use the exchange rate as a tool to deal with external disturbances such as trade disputes."