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What happens if Trump declares China a currency manipulator?

Michelle Zhu Published on Tue, Jul 26, 2016 / 4:52 PM GMT+8

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SINGAPORE (July 26): US presidential candidate Donald Trump has made his fair share of accusations against China: trade “rape”, copyright theft, and stealing American manufacturing jobs.

Among these, one of his most notorious China-bashing pronouncements would be that of currency manipulation, implying the country’s use of monetary policy to present its exports as more attractive to foreign buyers.

“I am going to instruct my Treasury Secretary to label China a currency manipulator,” asserted Trump in a recent speech on June 28.

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What happens if Trump declares China a currency manipulator?