China is not manipulating rates to retaliate in Trade War
China denies that it has manipulated its currency to derive trade benefits from it. The United States accused Asian superpower of this after the Chinese yuan fell sharply against the dollar on Monday. According to Beijing, the allegations of the US are only to reduce confidence in the global financial order and the currency system and to put trade and economic recovery in a knack.
The Chinese central bank maintains that the write-down of the yuan was determined by the market. The bank did take steps on Tuesday to lower its own currency further.
That move comes one day after the Chinese lowered the yuan to the lowest level against the dollar in ten years. As a result, Chinese products are relatively cheaper and the effects of US import duties partially offset.