Donald Trump wants to delete China from the America’s list of a currency manipulators. The countries prepare to sign a phase one trade deal in the White House on Wednesday.
The decision comes more than five months after the US added China to a list of manipulators which are said to unfairly hold down the value of their currency to give themselves an advantage against rivals.
Dropping the label will mark a significant milestone as the two countries seek to end a trade war that has been blamed for slowing the world economy and ultimately hitting Britain. It is likely to spark hopes they are serious about bringing the spat to an end.
President Trump branded China a manipulator in August and ignored an intervention from the International Monetary Fund, which said that there was no evidence of foul play and China failed to meet criteria set out in a 2015 American law for formal designation.
Steven Mnuchin, the Treasury Secretary, relied instead on a 1988 law to justify his claim after the yuan fell sharply against the dollar.