He pledged that the Treasury Department would officially label China a “currency manipulator” on his first day in the White House.He failed to follow through on that promise to the relief of many observers who said the claim wasn’t grounded in facts. But Trump’s new version of events that China stopped devaluing the yuan (also known as the renminbi) because of his presidential campaign is also deeply flawed.Related: Trump pulls his punches on China and GermanyChina has been intervening in currency markets “since and before Trump came to office,” said Chi Lo, senior economist for Greater China at BNP Paribas.”But the intervention has come in the form of propping up the renminbi on the back of capital outflows from China,” Lo said. “So the facts are at odds with Trump’s argument.”Related: Trump defends about face on labeling China a currency manipulatorBetween mid 2014 and early this year, China spent about $1 trillion supporting the yuan as its economy slowed and huge sums of money poured out of the country.
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