China is not going to use its national currency as an instrument for a trade war with Washington, Ministry of Commerce spokesman Gao Feng said. Speaking at a regular press briefing, the official said that in strict observance of the spirit of the G20 communique, China would not engage in competitive devaluation, or turn the renminbi into a tool for responding to trade disputes or other external events. The official said that China’s exchange rate will continue to be set at a reasonable, stable level. According to Gao, the artificial depreciation of the yuan would be “more detrimental than beneficial” to China’s economy.
Responding to recent tweets by President Trump about new Chinese tariffs on USD 60 billion worth of US goods being an attempt to influence the upcoming US midterm elections, Gao emphasized that the measures have “nothing to do” with politics.
The yuan’s exchange rate against the dollar has dropped by nearly 8 percent since March, with some US economists arguing that this is evidence of currency manipulation. Beijing has rejected the claim.
Trump’s fresh sanctions on USD 200 billion worth of Chinese goods and services are set to take effect September 24. Washington has warned that it could slap similar tariffs on another USD 267 billion of Chinese goods and services in the future.
Source : SPUTNIK
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