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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
West Asia crisis: India flags energy supply concerns; PM speaks to leaders of Oman, Kuwait, Qatar
New Delhi (PTI): As the conflict in West Asia widened, India on Tuesday emphasised the interest of one crore Indian nationals in the region and voiced concern over consequences for the Indian economy due to possible disruptions in energy supplies, even as Prime Minister Narendra Modi discussed the evolving situation with leaders of Oman, Kuwait and Qatar.
In its second statement since the US-Israel strikes on Iran and Tehran's subsequent retaliation, India once again called for "dialogue and diplomacy" to end the conflict, noting that New Delhi has critical stakes in the security and stability of West Asia and the current developments "evoke great anxiety".
New Delhi said it will continue to closely monitor the evolving situation and take relevant decisions in the national interest, adding it is in touch with the governments in the region as well as other key partners.
"In recent days, we have not only witnessed an intensification of the conflict but also its spread to other nations. The destruction and deaths have mounted, even as normal life and economic activities come to a halt," the Ministry of External Affairs (MEA) said.
"As a proximate neighbour with critical stakes in the security and stability of the region, these developments evoke great anxiety."
The ministry said almost one crore Indian citizens are living in West Asia, and their safety and well-being are of "utmost priority" for New Delhi. "We cannot be impervious to any development that negatively affects them," it said.
The conflict in West Asia intensified with Iran continuing to pound several Gulf countries in retaliation for the joint attack against it by Israel and the US. The US and Israel have also carried out fresh strikes on Iran.
As part of its offensive, Iran has blocked the strategically located Strait of Hormuz shipping route, triggering a surge in global oil prices.
"Our trade and energy supply chains also traverse this geography. Any major disruption has serious consequences for the Indian economy," the ministry said.
The Strait of Hormuz handles nearly 20 per cent of the world's total oil and gas supplies. About 50 per cent of India's oil imports, or roughly 2.6 million barrels a day, pass through the Strait.
Iran has carried out a wave of attacks mainly targeting Israel and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan and Saudi Arabia.
The Iranian retaliation increased after Tehran announced early Sunday that its Supreme Leader Ayatollah Ali Khamenei had been killed in the Israel-US strike.
"As a country whose nationals are prominent in the global workforce, India is also firmly opposed to attacks on merchant shipping. Already, some Indian nationals have lost their lives or are missing as a result of such attacks in the last few days," it said.
"In this background, India strongly reiterates its call for dialogue and diplomacy. We raise our voice clearly in favour of an early end to the conflict. Already, many lives have been regrettably lost, and we express our grief in that regard," it added.
It is learnt that at least three Indian nationals were killed in Iranian attacks on two merchant vessels in the waters off Oman.
The statement by the MEA, however, was silent on the killing of Ayatollah Khamenei.
The ministry said Indian embassies and consulates in the affected countries remain in close touch with Indian nationals and community organisations, issuing regular advisories.
"They have also extended all possible help to those stranded by the conflict. The embassies and consulates will continue to be proactive in addressing various consular aspects of this conflict," it said.
"We are in touch with the governments of this region as well as other key partners. The prime minister and external affairs minister have held discussions with their counterparts," it added.
Following his phone conversation with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, PM Modi said India stands "firmly" in solidarity with the Gulf nation and strongly condemns any violation of its "sovereignty and territorial integrity".
"We emphasised the urgent need to restore peace and stability in the region through dialogue and diplomacy. I also conveyed my appreciation for his continued support and care for the Indian community in Qatar during this challenging time," he said.
The prime minister described his phone conversation with the Crown Prince of Kuwait, Sheikh Sabah Al-Khaled Al-Hamad Al-Mubarak Al-Sabah, as "productive" and conveyed to him that India condemns the violation of Kuwait's sovereignty and territorial integrity.
"We underscored the significance of dialogue and diplomacy in restoring regional peace and stability. Appreciated the Kuwaiti leadership's continued support to ensure the safety and well-being of the Indian community in Kuwait," Modi said on social media.
In his phone conversation with Oman Sultan Haitham bin Tariq, Modi "deeply appreciated" Oman's continued support for the Indian community.
"Condemned the violation of Oman's sovereignty and territorial integrity.
We agreed that sustained diplomatic engagement is essential for the earliest restoration of regional peace and stability," the prime minister said.
India issued the first statement on February 28, hours after the US and Israel launched the military offensives against Iran.
"We had expressed our deep concern at the cankar spoke to the European Union's High Representative for Foreign Affairs and Security Policy Kaja Kallas and discussed the situation in West Asia. Our discussions focused on the ongoing conflict in Iran and the Gulf," Jaishankar said on X.
The US military has said six of its personnel were killed in the conflict so far. The US-Israeli strikes have killed at least 787 people, the Iranian Red Crescent Society said. According to reports, at least 11 people were killed in Israel.
In a related development, the Indian embassy in Iran has relocated most Indian students from Tehran.
"Due to the heightened risk perception in Tehran city, the Embassy of India has relocated most Indian students who were in Tehran," the Indian mission said.
The students were taken to locations outside of Tehran. The embassy arranged transportation, food and accommodation for the students.
