US Wielding Trade Bullying Stick

Aug 12-2019   

The accusation by the US that China is manipulating its currency is out-and-out unreasonable and groundless, said Prof. Yu Miaojie at a recent seminar. He's also the Deputy Dean of NSD.

The definition by the US of a currency manipulator comprises three criteria: The current account surplus must continually stay above 3% of GDP; Dubious moves are undertaken to intervene in the market and proofs can be established with regard to currency devaluation; And China must have a long-running trade surplus.

The first two accounts – the most critical ones of all – are utterly inapplicable to China, said Prof. Yu. Calling out China as a currency manipulator is just one more manifestation of the US trade bullying.