Trump refuses to officially name China a currency manipulator---

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The Trump administration again refrained from labeling China a currency manipulator on Tuesday, a decision that leaves one of the president’s campaign promises unfulfilled but avoids further escalation in the trade war between the world’s two largest economies.

The Treasury Department issued its semi-annual foreign-exchange report to Congress, expanding the number of countries whose currency and economic policies are scrutinized to 21 from 12. Five countries -- Ireland, Italy, Vietnam, Singapore and Malaysia -- joined China, Japan, South Korea and Germany on the watch list, while India and Switzerland were removed.

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China said Wednesday that “relevant international organizations,” and not the U.S., are in position to decide whether a country is a currency manipulator.

“The conclusion in the report that China is not a currency manipulator is in line with the common understanding of the international community,” Chinese Foreign Ministry spokesman Lu Kang said at a briefing in Beijing. “We hope the U.S. will respect market rules and not politicize the currency issue.”

Currency policy has emerged as President Donald Trump’s latest tool to rewrite global trade rules that he says have hurt American businesses and consumers. He has made foreign-exchange policy a key piece of trade deals with Mexico, Canada and South Korea, and it’s expected to be part of an agreement with China, should one be reached.

The administration last week ramped up its focus on foreign exchange, proposing tariffs on goods from countries found to have undervalued currencies. The move would let U.S.-based companies seek anti-subsidy tariffs on products from countries found by the U.S. Treasury Department to be engaging in competitive devaluation of their currencies. Currently no country meets that criteria.

As a presidential candidate in 2016, Trump often said that he would label China a currency manipulator on “day one” of his administration.

The number of countries on the U.S. watch list expanded after Treasury Secretary Steven Mnuchin lowered the threshold for qualification.

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