WASHINGTON: The Biden administration will not name any country as currency manipulator, but it has named China, Vietnam and Taiwan among nations that have broken global agreements not to use their currencies to gain unfair trade advantages .
In a report to Congress released on Friday, the Treasury Department cited China for a number of failures that prevent its trading partners from having full knowledge of how it manages its currency.
The Treasury plans to closely monitor the foreign exchange activities of Chinese state-owned banks to get a clearer picture of China’s monetary practices, according to the report.
Vietnam and Taiwan have violated a number of criteria that would justify designating them as currency manipulators and both will be placed on a watch list, according to the report.
Being named as a currency manipulator under U.S. law does not result in any immediate penalty, but it does require the Treasury to enter into negotiations with the foreign country in an effort to get it to change its currency practices. If these negotiations fail, the administration can impose trade sanctions. These sanctions can be challenged by countries before the World Trade Organization.