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IMF contradicts Trump: China hasn't manipulated its currency

China 'Badly' Wants to Make Deal with US, Says Donald Trump

China's economy is slowing - partly because President Donald Trump has slapped tariffs on US$250 billion ($386.4b) worth of Chinese imports - and market pressures are pulling the currency down.

"W$3 hat happened and what's happening with China now, we have an open dialogue, we'll see whether or not we keep our meeting in September, if we do that's fine, if we don't that's fine", Mr. Trump told reporters as he departed the White House for fundraising events in NY before heading for a working vacation from his New Jersey golf club.

But US duties of 25 percent on Chinese goods not yet facing tariffs would slow the economy in the following year, the International Monetary Fund said in a report.

Jeffrey Sachs, economics professor at Columbia University, said, "The IMF report makes clear that there has been absolutely no currency manipulation and that China's external balance has been appropriate", according to Xinhua.

The countries have imposed tariffs on $360 billion in two-way trade, and with the new round announced by Trump all Chinese goods would be subject to punishing duties. Chinese officials then moved to support the currency at a higher level, somewhat easing fears that trade tensions were escalating.

Former PBoC Governor Zhou Xiaochuan said at the gathering that conflicts with the U.S. could expand from the trade front into other areas, including politics, military and technology.

Trump left open the possibility of rebuilding that link if his team can strike a deal with China.

China also announced that it was halting orders of USA agricultural products, a blow to American farmers for whom China is a very big market. "Twenty-five years of abuse - I'm not ready so fast, so we'll see how that works out". "I'm not ready so fast".

The Trump administration labeled China a currency manipulator on Monday, after yuan fell past 7 against the dollar.

"Further weakness would send a signal that China wants to start a currency war, which we strongly believe is not the case because this would do little to benefit the Chinese economy as other Asian currencies would just weaken along with the yuan". "We have all the cards".

Locke, who was appointed by President Obama and served in the post for three years, said combined with China's response, these tariffs create a double-whammy for the US consumer.

The US's move is an "appalling" act to gain an advantage during trade negotiations and is doomed to fail, the Communist Party's flagship newspaper People's Daily said in a commentary Saturday.

The gloomy, and uncertain, outlook will make PBOC policy makers' decisions about how best to support the nation's slowing output with the exchange rate in mind more hard. "It's much simpler not doing any business with Huawei", Trump said.

POTUS added that if the Federal Reserve cut interest rates it would automatically bring down the USA dollar "a little bit" and make it easier for companies.

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