Trump is NOT winning the trade war

Trump is NOT winning the trade war

The US treasury secretary is convinced there are "other buyers" for China's stock of more than $1 trillion worth of US securities.

"We had a constructive discussion around currency", Mnuchin said.

Last month, U.S. President Donald Trump imposed tariffs on almost $200 billion of Chinese imports and then threatened more levies if China retaliated.

The US tariffs cover a broad range of Chinese consumer goods, while China's were aimed mainly at American liquefied gas, machinery and electric equipment.

Formally accusing China of manipulating the renminbi wouldn't trigger any sanctions or retribution, but the move would heighten tensions between the world's two biggest economies.

Beginning a year ago, the National Security Council led a review of China's efforts to obtain nuclear material, equipment and advanced technology from US companies, government officials said in a conference call with reporters on Thursday.

Foreign ministry spokesman Lu Kang offered no specifics, but said that "I have also seen the relevant reports".

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US President Donald Trump warned on Thursday there is "a lot more" he could do to hurt China's economy. "Markets tend to go too far in both directions and they have natural corrections". The Chinese currency has been falling in value against the dollar in recent months, raising concerns that Beijing is devaluing its currency to make Chinese goods more competitive against USA products. The central bank has tightened controls on currency trading to head off further declines.

Beijing's exports have been robustly growing all year in the face of rising tariffs and increasing uncertainty over relations with Washington. She pointed to the dollar's strength as the main culprit for the weaker Chinese currency.

Mnuchin would not say what the report would reveal, but in the past Treasury has placed China on a watch-list but said it did not meet the requirements to be labeled a currency manipulator.

Mnuchin has said since July that Treasury is concerned about the yuan's recent drop.

China imported 9.05 million bpd of crude oil in September, for a total of 37.12 million tons, which was the highest rate of crude oil intake since May, Reuters reports, citing data from the Chinese customs administration.

"It's obvious that the immediate effects of the trade war are the exact opposite of what the Trump administration had been planning", said Andrew Polk of Trivium China, a Beijing-based economics research firm.

The yuan has fallen for weeks against the U.S. dollar, dropping nine percent in the past six months, which mitigates the rise in the price of Chinese goods caused by punitive USA tariffs.

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