Brookings Institution

What it means if Trump names China a currency manipulator

President-elect Donald Trump has vowed to name China a currency manipulator on his first day in the White House.

There's only one problem - it's not true anymore. China, the world's second-biggest economy behind the United States, hasn't been pushing down its currency to benefit Chinese exporters in years. And even if it were, the law targeting manipulators requires the U.S. spend a year negotiating a solution before it can retaliate.

Trump spent much of the campaign blaming China for America's economic woes. And it's true that the U.S-China trade relationship is lopsided. China sells a lot more to the United States than it buys. The resulting trade deficit in goods amounted...

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