China obviously cares little about being slapped with the label of currency manipulator by the U.S.
One thing is clear, relations between the U.S. and China continue to deteriorate and there’s no end in sight for the trade war. In fact, the trade war is continuing to slowly escalate.
The yuan depreciated below 7 per dollar on Monday of last week for the first time since the global financial crisis in 2008. U.S. markets quickly dropped on the news.
China’s weaker currency makes its exports cheaper and the Trump administration has consistently complained that a cheaper yuan will offset the negative effects of tariffs against China for its unfair trade practices.
Dr. Peter Navarro was on CNBC last week laying out the case for why the trade war is escalating with China.