U.S. Treasury Report: Communist China Is Always on Currency Manipulation Watch List

Both Taiwan and Vietnam had violated three rules for currency manipulation last year. Due to the improved situation, the two countries have been placed on the watch list this year.

In contrast, Communist China continues to be placed on the currency manipulator watch list.

According to the report, the U.S. Department of the Treasury on Friday released a report on exchange rates, reviewing the macroeconomic and foreign exchange policies of major U.S. trading partners in 2021. In particular of Taiwan, the report shows the U.S. Treasury Department held bilateral consultations with Taiwan in May 2021, which was quite fruitful. This helped the two sides reach consensus on U.S. concerns about Taiwan’s exchange rate behavior and other related policy issues. At the same time, the department continues to consult closely with the Taiwan authorities.

However, the report named Beijing as the outlier among important economies, saying that China’s failure to publish data on foreign exchange interventions and its lack of transparency in even key features of the exchange rate mechanism. In response, the U.S. Treasury Department will closely monitor the foreign exchange-related behavior of state-owned banks in the future.