US labels China a 'currency manipulator'
Washington: The US has officially labeled China a currency manipulator, accusing it of using yuan to gain "unfair competitive advantage" in trade, a move that could further escalate the tense trade relations between the world's two largest economies.
Washington's move came as Beijing allowed its yuan to fall below the politically sensitive level of seven to the US dollar on Monday for the first time in 11 years and Chinese firms have reportedly stopped buying US farm produce.
During the 2016 presidential elections, Donald Trump had promised to label China as a currency manipulator, but the Department of Treasury kept the country on its watchlist, declining to take the step.
On Monday night, the department announced, "Secretary (Steven) Mnuchin, under the auspices of President Trump, has today determined that China is a 'Currency Manipulator'."
Mnuchin, after this decision, will engage with the International Monetary Fund to eliminate the "unfair competitive advantage created by China's latest actions", the treasury said.
Earlier in the day, Trump tweeted, "China is intent on continuing to receive the hundreds of Billions of Dollars they have been taking from the US with unfair trade practices and currency manipulation. So one-sided, it should have been stopped many years ago!"
In a statement, the treasury department alleged that China has a long history of facilitating an undervalued currency through protracted, large-scale intervention in the foreign exchange market.
In recent days, China has taken concrete steps to devalue its currency, while maintaining substantial foreign exchange reserves despite active use of such tools in the past, it claimed.
"The context of these actions and the implausibility of China's market stability rationale confirm that the purpose of China's currency devaluation is to gain unfair competitive advantage in international trade," the treasury said.
Chinese authorities have acknowledged that they have ample control over the RMB exchange rate, it added.
The treasury referred to a statement by the People's Bank of China (PBOC) which noted that it "has accumulated rich experience and policy tools, and will continue to innovate and enrich the control toolbox, and take necessary and targeted measures against the positive feedback behaviour that may occur in the foreign exchange market."
This is an open acknowledgement by the PBOC that it has extensive experience manipulating its currency and remains prepared to do so on an ongoing basis, it alleged.
President Trump on Thursday announced that the US will impose an additional 10 per cent tariff on USD 300 billion in Chinese imports, as he accused China of not being serious in arriving at the trade deal and failing to keep its promise to buy more American agricultural products.
Trump kicked off the trade war demanding China to reduce massive trade deficit which last year climbed to over USD 539 billion. He is also insisting on China to workout verifiable measures for protection of intellectual property rights (IPR) technology transfer and more access to American goods to Chinese markets.
The 12th round of talks between top trade negotiators from China and US, the first after they broke down in May, lasted just half a day and ended last week with no sign of a breakthrough, but a willingness to continue discussions.
US Congressman Roger Marshall said once again, Trump is doing exactly what he said he would do with China, now in regard to their currency.
"US producers, workers and consumers have waited long enough for an administration who would stand up to China. I'm thankful it's finally happening," he said.
On the development, Congressman Bradley Byrne said,"We cannot sit back and allow China to continue to take advantage of our country and put our workers at a disadvantage."
"I'm proud to stand with President as we finally crack down on China," he said.
"Great work" by the president to finally hold China accountable for their corrupt actions, Byrne said, adding that a lot of presidents have "talked" about this problem, but Trump finally took action.
On Chinese reportedly stopping from buying US farm produce, Congresswoman Cheri Bustos from Illinois said it's clear as day that farmers are truly paying the price of Trump's erratic and short-sighted trade policies.
"Tariffs may sound nice to a Manhattan billionaire - but in rural Illinois, we're feeling the consequences of a trade war that may hollow out our agricultural economy for generations to come," she said.
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SC delivers split verdict on Section 17A of PC Act mandating sanction to probe govt servants
New Delhi (PTI): The Supreme Court on Tuesday delivered a split verdict on the constitutional validity of a 2018 provision of the anti-graft law which mandates prior sanction for initiating a probe against a government servant in a corruption case.
While Justice BV Nagarathna said Section 17A of the Prevention of Corruption Act is unconstitutional and needs to be struck down, Justice KV Viswanathan held the provision as constitutional while stressing on the need to protect honest officers.
Section 17A of the Prevention of Corruption Act, 1988, introduced in July 2018, bars any “enquiry or inquiry or investigation” against a public servant for recommendations made in discharge of official duties without prior approval from the competent authority.
The top court's judgement came on a PIL filed by NGO 'Centre for Public Interest Litigation' (CPIL) against the validity of amended section 17A of the Prevention of Corruption Act.
Requirement of prior sanction is contrary to the Prevention of Corruption Act, forecloses inquiry and protects corrupt, Justice Nagarathna said.
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"Section 17A is unconstitutional and it ought to be struck down. No prior approval is required to be taken... The requirement of prior sanction is contrary to the object of the Act, and it forecloses inquiry and protects the corrupt rather than seeking to protect the honest and those with integrity who really do not require any protection," Justice Nagarathna said.
Justice Viswanathan said striking down section 17A will be akin to throwing the baby out with the bath water and the “cure will be worse than the disease”.
"Section 17A is constitutionally valid subject to the condition that the sanction must be decided by the Lok Pal or the Lokayukta of the State...
"The safeguard of this provision will strengthen the hands of honest officers but also ensure that the corrupt are brought to book. It will guarantee that the administrative machinery attracts the best talent for the service of the nation,"Justice Viswanathan said.
The case will now be placed before Chief Justice of India Surya Kant for forming a larger bench to hear the matter for a final decision.
"Having regard to the divergent opinions expressed by us, we direct the Registry to place this matter before the Chief Justice of India for constituting an appropriate bench to consider the issues which arise in this matter afresh," the bench said.
Advocate Prashant Bhushan, appearing for the NGO, had argued that the provisions crippled the anti-corruption law as sanctions were not usually forthcoming from the government, which was the ‘competent authority’.
Solicitor General Tushar Mehta had appeared for the Union government.
