The US Treasury department will drop the designation of China as a currency manipulator in a gesture that aims to ease tensions with Beijing ahead of this week’s signing of a deal to halt the trade war.
The move, flagged by an administration official, would reverse last summer’s controversial decision by the US government to tag China with the label of currency manipulator, when relations between Washington and Beijing escalated sharply.
It could point to a more lasting truce between the world’s two largest economies, since it settles one of China’s biggest sources of irritation with Washington.
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