The U.S. Department of Treasury has designated China as currency manipulator, a historic move that no administrations has exercised since 1994.
Based on its decision, the Treasury Department said in a statement Monday that Secretary Steven Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by Beijing's currency moves.
He also said Beijing's pattern of actions is also a violation of China’s G20 commitments to refrain from competitive devaluation of its currency.
This follows President Trump's strong criticism against Beijing on Monday made as the Chinese yuan dropped to its lowest levels against the U.S. dollar in 11 years.
He said in a tweet that this is called (quote) "currency manipulation."
He also expressed his dissatisfaction in the U.S. Federal Reserve, continuing to push the Fed to cut interest rates to weaken the strong dollar.
He also slammed China for stealing American businesses and factories, hurting American jobs, through its currency manipulation.
The yuan dropped and crossed the psychologically sensitive level of seven to the U.S. greenback on Monday, the lowest level since the global financial crisis in 2008.
His comments come less than three months after his own administration decided not to label China a currency manipulator.
They also come just days after Trump proposed an additional ten percent tariff on Chinese imports worth 300 billion dollars that would take effect on September 1st.
Some analysts forecast Beijing's tinkering with the yuan and the rapid U.S. designation of China as a currency manipulator could trigger an all-out currency war between Washington and Beijing.
Kim Hyo-sun, Arirang News.