Across The Border | Trump still likely to label Beijing a ‘currency manipulator’ after Xi talks

With the first official meeting between Chinese President Xi Jinping and US president Donald Trump set for this Thursday and Friday in Florida, analysts see the prospects for a trade war diminishing in the near term, even though Trump is still likely to label China a currency manipulator to fulfil an election campaign promise.

Andy Rothman, a strategist at Matthews Asia, said it is highly likely Trump will label China a “currency manipulator” as a way to fulfil his campaign promise but the cost for China would be “zero”.

A semi-annual Treasury Department report which has the power to designate China as a currency manipulator is due on April 15, a little over a week after the two presidents finish their meetings.

“Some people said there would be tariffs, but it won’t be the case,” he said.

“Xi will just ignore it. He will say it’s all about US domestic politics and won’t respond in any meaningful way.”

Once the Treasury signs the letter designating China as a currency manipulator, US law stipulates that the American side must begin a one-year negotiating process with the Chinese, Rothman said.