Rogue! The United States officially lists us as a "currency manipulator"!

The news that the US dollar exchange rate broke 7 within a short period of time after opening yesterday has spread to all major cross-border media. I also conducted a small analysis yesterday. (Click here to view yesterday's analysis)

It was mentioned that the current exchange rate break of 7 was most likely the result of the central bank's intention. Because the depreciation of the RMB against the US dollar within a normal range can effectively help cross-border sellers affected by Trump's tariffs to buffer costs.

I didn't expect to see Trump's tweet when I woke up in the morning, accusing us of improper exchange rate manipulation.

Trump's statement that the RMB has depreciated to its historical lowest point is nonsense. In fact, the RMB exchange rate against the US dollar remained above 8 15 years ago.

Moreover, exchange rate manipulation is a big label that cannot be arbitrarily applied. Although adjusting the exchange rate is part of a country's sovereignty, malicious exchange rate manipulation is an act prohibited by the International Monetary Fund (IMF) and the World Trade Organization (WTO).

This is a very serious charge. The United States has proposed to label China a currency manipulator five times since 1994 , but these proposals were unsuccessful due to concerns about China's counterattack.

Our national strength is now stronger than it was in 1994. Logically, Trump should be even more cautious about acting rashly. This time he is just bragging on Twitter.

Unexpectedly, a few hours later, the U.S. Treasury Department officially announced

“List China as a currency manipulator”

Compared with the previous tariffs imposed on us, there are two main differences after listing us as a currency manipulator.

First, the tariffs Trump set before were not justified.

The US consumers were told that the tariffs were to make US products more competitive, but the cost of buying things for them kept going up. Americans are not stupid, and they hate the tariff policy, and the voices of opposition are getting louder and louder.

But it is different now. By labeling us as a currency manipulator, the United States has found a legitimate reason for its tariff policy. Now the United States can reasonably and legally implement trade protection policies against China.

For example, it is like finding a name for yourself as a "war of national restoration" when fighting a war. You can immediately stand on the moral high ground to sanction the other side, and the voices of domestic opposition will be greatly weakened.

Second, it is not just trade friction, but also currency war.

There is another important punishment link for currency manipulators, that is, the United States can reasonably and legally adjust the exchange rate of the US dollar against the RMB at will without being punished by the IMF and the WTO.

This means that trade frictions will be further escalated, and the war will extend from trade to currency exchange rates and even financial markets. The US Treasury Department may freeze the overseas assets of Chinese companies to impose financial penalties.

Currency manipulator is such a powerful crime that the United States has not put any trading partner on this list in 25 years. Could it be that China is included so easily?

Because this matter is not in accordance with the procedure.

First, the United States does not have the right to identify currency manipulators; that right belongs to the International Monetary Fund (IMF).

The United States needs to consult the IMF whether the country is actually manipulating its exchange rate. After investigation and determination, the U.S. Congress has the right to announce and formulate disciplinary measures. It is not ruled out that the IMF will subsequently stop the unilateral punishment of the United States.

And this assessment cannot be carried out at any time, but is conducted every six months. The last assessment was on May 29 this year, which is only about two months ago.

The United States has now included China on its currency manipulator list, skipping the IMF review and not following its own assessment results. It is simply trying to use this policy to threaten us and make us make concessions in the next Sino-US trade negotiations.

Our central bank also responded strongly to such rogue behavior at the first opportunity.

Our spokesperson also stated that China adheres to the market-determined exchange rate system, does not engage in competitive devaluation, does not use the exchange rate for competitive purposes, and will not use the exchange rate as a tool to deal with external disturbances such as trade disputes.

Now, for the September negotiations, both sides have their own trump cards in hand. The United States has already revealed a trump card, but our attitude has remained unchanged.

We don't want to fight

But I'm not afraid of fighting

You have to fight when necessary!

We, the cross-border sellers, must also be prepared for a long-term battle against tariffs. It is not just a small group of sellers who will be affected, but all of us!

I will use price increases to tell American consumers that you should pay the punitive tariffs on my behalf!

In order to achieve good sales with high profit margins, you can come to me to get an operation skills package to help you raise prices successfully!

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

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