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US President Donald Trump and China’s President Xi Jinping pause for photographs at Mar-a-Lago, in Palm Beach, Florida. File photo: AP
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Eyeing North Korea, Donald Trump holds on to bargaining chip with China

US president marks 100 days in office with rally, saying now is not the time to brand Beijing a currency manipulator as they deal with North Korea

Donald Trump's first 100 days
Teddy Ng
Teddy NgandAgencies
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US President Donald Trump is holding on to his threat to label China as a currency manipulator as a bargaining chip to deal with North Korea, analysts say, even though Beijing may not play ball.
Going back to his core support base in a campaign-style rally in Pennsylvania to mark his first 100 days in the White House, Trump said now was “not exactly the right time” to confront Beijing when President Xi ­Jinping (習近平) was helping him rein in North Korea’s aggressive pursuit of ballistic missiles capable of carrying nuclear weapons.
US President Donald Trump acknowledges supporters during his rally. Photo: AFP
He was speaking just after North Korea test-fired a ballistic missile – although it was said to have ended in failure – in defiance of international condemnation.

During last year’s presidential campaign, Trump had pledged to label Beijing a ­currency manipulator on his first day in office.

Beijing is more worried about the stability of North Korea than being labelled as a currency manipulator by the US
Zhang Yuquan
“We have currency manipulation by China, but China is helping us – possibly or probably – with the North Korean situation,” Trump said at his latest rally.

“Let’s see what happens. And I think it’s not exactly the right time to call China a currency manipulator right now.”

Referring to his landmark meeting with his Chinese counterpart last month in Florida, Trump said he had asked Xi “to help us out” with North Korea. It “doesn’t work” to ask Xi to get tough on North Korea while telling him that China was manipulating the yuan to gain an unfair trade advantage, he added.

“I believe he wants to get that situation taken care of,” Trump told his supporters. “They have tremendous power, and we’ll see what happens.”

Zhang Yuquan, an American studies expert at Guangzhou’s Sun Yat-Sen University, said Trump was still linking the currency issue with North Korea’s nuclear programme as a bargaining chip against China, but Beijing might not play along.

“Beijing is more worried about the stability of North Korea than being labelled as a currency manipulator by the US,” Zhang said.

The logic is simple. When you keep sharpening your knives at someone’s neck, how can you expect the other side not to react?
People’s Daily

“China cannot afford any chaos in the Korean Peninsula. The negotiations between China and the US on [North Korea], and trade and economic ties would be difficult if Trump declared China a currency manipulator.”

Shi Yinhong, a US affairs expert at Renmin University of China in Beijing, said China was already taking a tougher line against Pyongyang.

“But there is still a gap between what the US wants China to do and what China is doing,” Shi said.

Trump was unlikely to brand Beijing as a currency manipulator because he had not fully formed his China strategy, and such a move could also damage the US economy, Shi added.

Trump, in an interview to air overnight, said he believed Xi was already “putting pressure” on North Korea. If North Korea carried out a nuclear test “I would not be happy”, Trump told CBS’ Face The Nation. “And I can tell you also, I don’t believe that the president of China, who is a very respected man, will be happy either,” Trump said.

Asked if “not happy” signified “military action”, Trump answered: “I don’t know ... we’ll see.”

“It’s not an easy situation for China, believe me, but we have somebody there who’s causing a lot of trouble for the world,” Trump said, referring to North Korean leader Kim Jong-un.

Kyodo, Agence France-Presse

This article appeared in the South China Morning Post print edition as: Trump holds on to bargaining chip with china
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