The US government has again decided not to brand China a currency manipulator despite growing trade tensions after President Donald Trump imposed tariffs on Chinese exports to try to reduce the massive US trade deficit with China and contain Beijing’s growing power.
The US Treasury Department said in its semi-annual currency report on Wednesday that a recent depreciation of China’s yuan currency will likely exacerbate the US trade deficit, but US officials found Beijing appeared to be doing little to directly intervene in the currency’s value.
“Of particular concern are China’s lack of currency transparency and the recent weakness in its currency,” said US Treasury Secretary Steven Mnuchin.
The report says that six nations — China, Germany, India, Japan, South Korea and Switzerland — will remain on a watch list subjecting them to added US pressure to lower trade surpluses.
The Treasury said it was monitoring US trading…