Yuan's weakening not due to manipulation

In what was widely welcomed as a show of restraint by the United States not to exacerbate the frictions with China, the US government did not, as some anticipated, name China as a currency manipulator.

The decision was a slap in the face of those US politicians who have repeatedly accused China of manipulating its currency. But it was also the correct decision, since China does not meet the three criteria set by the US for designating a currency manipulator.

According to the Trade Facilitation and Trade Enforcement Act of 2015, for a US trade partner to be named a currency manipulator it has to have a significant trade surplus with the US, have a material current account surplus at least 3 percent of its GDP, and persistently make one-sided interventions in the foreign exchange market.