The parties could also agree on the possibility of imposing sanctions against China if Beijing will manipulate the exchange rate, the newspaper notes.
The draft trade agreement between the US and China includes measures to limit Beijing’s ability to manipulate the currency. This was reported on Friday by The Wall Street Journal newspaper, citing its own sources.
According to them, the US authorities may oblige China to provide more detailed economic information that would allow to identify actions aimed at manipulating the yuan exchange rate. As the newspaper clarifies, during the negotiations, the parties could also agree on the possibility of imposing sanctions against China if Beijing will manipulate the exchange rate for the sake of increasing exports. “The main issue concerning the currency is that we want to make sure that people comply with their obligations, that they do not devalue the currency for competitive purposes”, the newspaper quoted the US Treasury Secretary Steven Mnuchin.
Earlier, Bloomberg reported that the United States in trade negotiations with China has not yet come to the exact wording, but the commitment to maintain the stability of the yuan was discussed for several rounds of negotiations in recent months. The representatives of both countries reached a preliminary agreement that the resolution of this issue would be part of the final agreement. This requirement of the American side, the Agency believes, is aimed at neutralizing any attempts by Beijing to depreciate its currency to counter American duties.