Trump heaped criticism on China during his campaign saying they deliberately undervalued their currency, the yuan, to gain an advantage in global trade and create a wide trade deficit with the United States.
China does not fully meet the department's definition of a currency manipulator because it has recently been buying yuan to prevent a sudden drop in the Chinese currency, instead of steering it lower.
Treasury Secretary Steven Mnuchin pledged to continue to monitor currency practices closely, saying that an essential component of the Trump administration's strategy is to ensure that American workers and companies face a level playing field when competing internationally.
Still, despite that reversal, the report said a decade of holding down the renminbi had imposed "significant and long-lasting hardship on American workers and companies" and left China with the largest trade surplus of any country against the United States - $347 billion a year ago.
Washington D.C. [United States], Apr. 15 (ANI): The Trump administration has not labeled any country, including China, as a currency manipulator in a report examining exchange rate fluctuations.
Economists agree that China doesn't now merit the label of currency manipulator, and has not engaged in the practice for several years.
"When our trading partners engage in currency manipulation, they impose significant, and often long-lasting hardship on American workers and businesses", he said.
Taiwan's Central Bank said Saturday that the results have been anticipated by the bank so the latest US currency report is unlikely to impose any material adverse impact on the local foreign exchange market.
The decision not to name China a currency manipulator has marked one of the sharpest major reversals of Trump's young presidency.
Harry Yen (顏輝煌), head of the local central bank's foreign exchange department, said that the bank has established an effective communication channel with the U.S. Treasury and will express its opinions about the department's concerns over the New Taiwan dollar and U.S. dollar exchange rate.
Trump has softened his rhetoric against China's trade practices as Beijing has intervened in foreign exchange markets to prop up the value of its yuan, and as he looks to China for help dealing with rising tension on the Korean peninsula. In a recent interview after meeting China's President Xi Jinping, he said he no longer planned to go ahead with the move.
A 2015 law requires the Treasury Department to review the currency practices of major trading partners using three criteria, including exporting more than it imports to the US, and persistently buying or selling its currency to change its value.