(Liberty Bell) – One of the reasons President Trump has been such a success in the Oval Office, particularly when it comes to economic matters, is because he is a stellar business man who has perfected the art of the deal, something that previous presidents have sorely lacked.
While there have been many instances where Trump has made killer deals since taking his seat in the White House, one of the most problematic countries to deal with has been China. Pretty difficult for capitalists and communists to get along, you know.
Well the United States is making a major move ahead of the trade deal signing with China, removing them from the list of countries considered currency manipulators.
Here’s more from CNBC:
The United States removed China from a list of countries considered currency manipulators just two days before top trade negotiators for Washington and Beijing sign a key “phase one” trade deal, the Treasury Department announced Monday.
The decision to strike China from the currency manipulator list comes more than five months after the Treasury Department formally made the designation. President Donald Trump and China Vice Premier Liu He are scheduled to sign a preliminary trade agreement in Washington on Wednesday. China is now on a “monitoring list” for currency practices along with nine other countries, including Germany, Italy and Japan.
“The Treasury Department has helped secure a significant Phase One agreement with China that will lead to greater economic growth and opportunity for American workers and businesses,” Treasury Secretary Steven Mnuchin said in a statement. “China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability.”
CNBC reported earlier on Monday that the U.S. would make the move, citing a person familiar with the matter. The S&P 500 rose to a record high after reports from that the Treasury Department will no longer list China as a manipulator.
The world’s two largest economies for nearly two years have been levying tariffs back and forth while trying to work out the terms of a permanent trade resolution. Trump, in particular, has been critical of the U.S.-China trade deficit as well as Beijing’s previous moves to devalue its currency, which tends to boost its exports.
China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!
— Donald J. Trump (@realDonaldTrump) August 5, 2019
Treasury’s move in August to call China a manipulator raised tensions in the trade war and was the first such formal designation since President Bill Clinton’s administration. It came as the Chinese yuan weakened beyond 7 yuan to the dollar for the first time since 2008.
China’s central bank governor, Yi Gang, maintained at the time that Beijing doesn’t use its currency as a tool to cope with external disturbances such as trade disputes. The yuan has since returned to a pegged range considered normal — in line with China’s economic fundamentals and market demand and supply, and not weak enough to anger its trading partners.
And while largely symbolic, the Treasury Department’s summertime decision to label China as a manipulator could have left Beijing open to additional scrutiny through the IMF.
The president’s decision to remove China from the list drew criticism from the Senate’s top Democrat, New York’s Chuck Schumer.
“China is a currency manipulator — that is a fact,” Schumer said in a statement. “Unfortunately, President Trump would rather cave to President Xi than stay tough on China. When it comes to the president’s stance on China, Americans are getting a lot of show and very little results.”
President Trump, unlike Chuck Schumer, clearly sees how important this deal with China is, which is why he’s willing to wheel and deal with them a bit. If you want to be successful in the business world, you sometimes have to be flexible and willing to compromise on small points. That’s just good business.
Why would someone want to be your partner in an endeavor if the deal didn’t give them something they want? This is pretty much just common sense. Guess it’s safe to say Schumer isn’t strong in that department.