China Pledges Not To Manipulate Currency To Achieve Trade Advantage - Trade Agreement Text

WASHINGTON (UrduPoint News / Sputnik - 16th January, 2020) China agrees to not engage in Currency manipulation for the purpose of achieving trade advantages over the United States, according to the text of the agreement signed by the two countries at White House on Wednesday.

"The Parties shall refrain from competitive devaluations and not target exchange rates for competitive purposes, including through large-scale, persistent, one-sided intervention in exchange markets," the agreement states.

The United States and China will communicate regularly and consult on foreign exchange markets, activities and policies as well as consult with each other regarding the International Monetary Fund's assessment of the exchange rate of each country, the agreement states.

The agreement states that the United States and China should achieve and maintain a market-determined exchange rate regime.

On Wednesday, US President Donald Trump and Chinese Vice-Premier Liu He signed the Phase One trade agreement, which covers issues such as intellectual property, tariff reductions and purchasing commitments.

The US-China trade war began last January, when the Trump administration announced duties on Chinese-made solar panels and washing machines. The Trump administration has since placed tariffs on $550 billion worth of Chinese goods, while China has imposed duties on $185 billion worth of US goods.