Consensus on many key currency exchange rate issues between China, US: Chinese official

Chinese delegation, led by Chinese Vice Premier Liu He took part in the latest round of talks in Washington to discuss important trade issues with US Trade Representative Robert Lighthizer and Treasury Secretary Stephen Mnuchin.

Chinese and US officials discussed exchange rates and reached a consensus on many “important” issues during the latest round of negotiations to end the trade war, media reports said quoting Governor of the China’s central bank Yi Gang. 

In a bid to end the trade war that has been brewing between the two countries since last year, talks have been taking place between top trade officials from America and China in the last few months. They are trying to come up with a comprehensive trade deal. 

Notably, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items from China in March last 

Trump is also demanding that China reduce the USD 375-billion trade deficit, provide legal protection for intellectual property rights (IPR), technology transfer and more access for American goods to Chinese markets, media reports. Further, he has imposed tariff hikes on USD 250 billion of Chinese goods and threatened to extend tariffs on USD 200 billion Chinese imports to 25 per cent. China responded by imposing retaliatory tariffs on USD 110 billion of American goods.

Notably, successive US Presidents, including Trump, have accused China of manipulating its currency RMB or Yuan to make its exports more competitive, reports in media said. However, Washington has so far avoided declaring Beijing a currency manipulator. 

“The two parties discussed how to respect the autonomy of each other’s monetary authorities in determining the monetary policy,” Yi was quoted in the media.

Yi was part of the Chinese delegation, led by Chinese Vice Premier Liu He, which took part in the latest round of talks in Washington to discuss important trade issues with US Trade Representative Robert Lighthizer and Treasury Secretary Stephen Mnuchin, media reports said.

“The discussion also involved mutual adherence to the market-decided exchange rate mechanism, honouring the commitments made at previous G20 summits such as choosing not to adopt competitive depreciation, not to use exchange rates for competition purpose, and maintaining close communication on foreign exchange markets,” Yi was quoted as saying. The two sides also discussed that both sides should commit to disclose data in accordance with the statistics transparency standard of the International Monetary Fund, he said.

Yi reiterated that China will never use exchange rates for competition purpose, nor apply them to boost exports or take them as tools of trade frictions. China’s exchange rates are becoming increasingly market-oriented, media reports said.

Source: FE Online/media reports


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