New U.S. President Donald Trump visits outgoing President Barack Obama. (Photo : Getty Images)
The Chinese yuan is being manipulated by the government, according to the 45th U.S. President, Donald Trump.
The new American President made it clear that he will even declare China as a currency manipulator on his second day of office. Donald Trump made news with his anti-China sentiments.
Analysts agree that China is manipulating the Chinese renminbi to increase its value.
According to Tim Worstall, a fellow at the Adam Smith Institute in London, "Donald Trump has been telling us all for a long time now that China is a currency manipulator."
He explained, "It's part of his plan for his first 100 days in office to get on with making sure that China is legally declared to be such a currency manipulator and thus start the process of doing something about it."
Worstall also said that China is just correcting the currency's valuation. He noted, "The problem with this is that China really is a currency manipulator. But they're manipulating the value of the yuan up, not down. Thus returning it to the correct free market value isn't going to have the desired effect of closing America's trade deficit with China."
Chinese President Xi Jinping explained that Trump should start working with China. In a phone call, Xi told Trump that cooperation between the U.S. and China is the only choice.
President Xi said, "The facts prove that cooperation is the only correct choice for China and the United States."
He added that both U.S. and China should "promote the two countries' economic development and global economic growth" and "push for better development going forward in China-U.S. relations."
