Is China a currency manipulator or not?

How to understand their recent actions — and Trump's response

Chinese money.
(Image credit: Illustrated | chengyuzheng/iStock)

Late on Monday, the Trump administration turned its trade war with China up to 11, by officially labeling the country a "currency manipulator."

It was an obvious reaction to a sudden fall in the value of China's currency, which will help keep Chinese exports cheaper and help neutralize the pain of President Trump's tariffs. But it also raises a tension: By all accounts, the renminbi dropped because China stopped intervening in the foreign exchange market. The whole idea of "currency manipulation" tends to shift depending on who's doing the accusing and what their frame of reference is.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.