Photo: Thomas Kienzle/AFPChina and Germany are not manipulating the value of their currencies to gain an unfair trade advantage, but both should do more to reduce their large trade surpluses with the United States, the Treasury Department said on Friday. The decision was expected after President Donald Trump this week reversed himself and said China was not a currency manipulator. Unlike the previous administration, which issued its final report in October, the latest semi-annual report urges specific policy actions the countries should pursue that would lead to a lower trade surplus. With a trade surplus in goods with the United States of $347 billion last year, and continued policies that restrict free trade and foreign investment, "Treasury will be scrutinizing China's trade and currency practices very closely." Those imbalances include its $65 billion goods trade surplus with the United States last year, and what the department calls "the world's largest current account surplus at close to $300 billion."

Source: The Local April 15, 2017 07:52 UTC