(Jeffrey Black, Yinan Zhao & Miao Han – Bloomberg)
China’s top trade and monetary policy officials this weekend delivered a subtle push-back against trade demands made by Washington, delivering Beijing’s own interpretation of progress made in talks over the enforcement of any deal and the role of currencies.
People’s Bank of China Governor Yi Gang said the two sides have reached consensus on many crucial issues, and have discussed previous commitments made by Group of 20 nations on avoiding competitive devaluation of currencies. They also talked about respecting the “autonomy” of each other’s monetary policy, he said.
While Yi’s comments address U.S. concerns over China’s potential depreciation of the yuan in order to blunt the impact of tariffs imposed by the Trump administration, they evaded any mention of a one-sided pledge by Beijing to hold its currency stable. That issue has been a key sticking point in talks in recent weeks, as President Donald Trump pushes for a deal. Click here to read more.