Trump Yanks US Out of Deal That Gave China Big Shipping Discounts

US President Donald Trump

Sputnik Sergey Guneev'A Bigger Problem: Trump Says China Meddled in 2016 Presidential Election

It also comes amid an escalating trade dispute between Beijing and Washington that has resulted in US imposition of tariffs on about $250 billion worth of Chinese goods and the Chinese retaliating with similar punitive taxes on about $110 billion in American products.

The dollar, however, was in fine fettle, hitting a one-week high after the minutes of the Federal Reserve's latest meeting backed market expectations for borrowing costs to rise further.

Meanwhile, in an interview with FOX Business on Wednesday, National Economic Director Larry Kudlow said "China is a problem" when it comes to trade.

The president argues the USA loses as much as $800 billion in cash going to China every year as a result of the trade imbalance between the two countries.

MSCI broadest index of Asia-Pacific shares outside Japan fell 0.5 percent. The yuan fell to 6.9411 per dollar at mid-morning and has declined by nearly 10 percent against the dollar since April as China's economic growth cooled and USA and Chinese interest rates went in opposite directions.

"The overall falling trend of total social financing growth remains unchanged, and the loosening of the credit situation that the market has been waiting for has not yet emerged". The report also recommended steps the United States can take to address the problems identified in the Memorandum.

Speculation that the US Treasury would make that claim formally this week has not been borne out, however.

The Treasury Department stopped short of declaring China a currency manipulator in its semi-annual report on foreign-exchange rates, averting an escalation of a trade war while serving notice that the US will closely watch the yuan after its recent slide.

President Donald Trump plans to withdraw from a 144-year-old postal treaty that has allowed Chinese companies to ship small packages to the United States at a steeply discounted rate, undercutting USA competitors and flooding the market with cheap consumer goods.

While Treasury said in the report that direct intervention by China's central bank has recently been "limited", the "deeply disappointed" that the nation doesn't disclose its foreign exchange intervention.

But some investors remain wary of a slide towards the psychologically important level of 7 to the dollar. -China trade deficit and exit multilateral agreements that don't favor the United States, President Donald Trump began the process Wednesday to withdraw from a 144-year-old global postal agreement that lets Chinese retailers mail small packages to the USA for rock-bottom prices.

Oil prices fell on Wednesday, with US futures settling below $70 a barrel for the first time in a month, after USA crude stockpiles rose 6.5 million barrels, nearly triple what analysts had forecast, while exports dropped.

The West Texas Intermediate crude futures and Brent crude futures last traded at $69.79 and $80.07 a barrel, respectively.

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