INSUBCONTINENT EXCLUSIVE:
would ensure Beijing lives up to its promise to not depreciate the yuan, four people familiar with the matter said.
Treasury Secretary
Steven Mnuchin on Friday touted the currency pact as the strongest ever, though he offered no details, following two days of high-level
talks in Washington between US and Chinese officials
The discussions were extended into the weekend in search of a broad trade deal to prevent the US from increasing tariffs on Chinese goods
next week.
President Donald Trump has previously accused China of gaming its currency to gain a competitive advantage, though his Treasury
Department has repeatedly declined to name the Asian nation a manipulator in its semi-annual reports on foreign-exchange markets.
Still, the
If successful, that would neutralize any effort by Beijing to devalue its currency and make its exports cheaper to help counter American
tariffs, people familiar with the ongoing talks said this week.
As part of the talks, China has offered to buy more American goods such as
property from US companies operating in China.
Major hurdlesUS Trade Representative Robert Lighthizer, who is leading talks for the White
House said on Friday that the negotiators have made progress on structural issues related to the Chinese economy but still face obstacles
negotiations.
Trump has said he will need to finalize any trade deal directly with Chinese President Xi Jinping
success of the currency pledge hinges on what enforcement mechanism the two countries decide on for the entire agreement, two of the people
Lighthizer has said any deal with China needs to contain a strong enforcement mechanism to ensure long-lasting changes to the trading
The White House has complained that Beijing has failed to follow through on its pledges to carry out reforms under previous
administrations.
Two people familiar with the talks said an option under discussion to enforce the agreement is the possibility for the US
to increase tariffs on Chinese goods if Beijing breaks its word.
Currency moves have become part of the discussions over trade by the Trump
The US secured a currency pact in the new North American Free Trade Agreement with Mexico and Canada and has said it will seek similar
was deliberately weakening its currency to offset the impact of tariffs
The yuan has rebounded nearly 2 per cent year-to-date, after sliding to a decade-low against the dollar in late October.
