US Treasury Secretary: Trade Talks With China Should Include Currency
By Reuters On October 12, 2018
WASHINGTON (Reuters) - US Treasury Secretary Stephen Menochin said on Friday he had told the head of China's central bank that currency issues should be part of any further trade talks between the United States and China, and voiced concerns about the recent weakness of the yuan.
Manuchin told Reuters in an interview that China needed to define specific "items of work" to rebalance the trade relationship between the two countries before talks could be resumed to settle differences.
US Treasury Secretary and People's Bank of China Governor Yi Jang discussed the currency issues on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Indonesia's resort island of Bali.
"I have expressed my concerns about the weakness of the yuan and that as part of any trade discussions, the currency should be part of the discussion," Manochen said of the meeting.
"I think we have received a constructive explanation from his point of view on these issues," he said.
China's monetary policy is in a cycle opposite to that of the US Federal Reserve, which raises interest rates in a strong economy, sources familiar with Yi said on Thursday.
Manuchen's comments on China's currency come ahead of next week's Treasury Department report on currency manipulation awaiting markets, the first since a major yuan drop began this spring as trade tensions between the world's two largest economies mounted.
The yuan fell to 6.912 against the dollar as China announced a record trade surplus with the United States in September, raising fears of a trade war between the t