The currency rules as described by the governor of China’s central bank are practically identical to what Beijing promised in 2016.
BEIJING — A pending trade agreement between the United States and China could put few restrictions on Beijing’s control over the strength of its currency, potentially inflaming trade hawks in Congress and within the Trump administration itself.
China’s control over the value of its currency has long been a major point of conflict between Beijing and the West, though the issue has faded in prominence in recent years. Lawmakers and officials in other countries have contended that Beijing has unfairly weakened China’s currency, the renminbi, compared with the American dollar and other currencies, giving Chinese companies and factories an advantage when selling goods abroad.
China has long denied the accusation.
Yi Gang, the governor of China’s central bank, said at a news conference on Sunday morning in Beijing that during high-level trade talks last month in Washington, “the two sides reached consensus on many key and important issues” about currency markets.
The consensus included an understanding that both countries would avoid devaluing their currencies to achieve a competitive advantage for their exports, Mr. Yi said. Both countries would also continue to comply with previous currency agreements among the Group of 20 economies, he said. Both countries would also maintain close communication about currency markets and would disclose detailed information in accordance with International Monetary Fund standards, he added.
American officials have taken varying stances on the currency provisions. President Trump and Treasury Secretary Steven Mnuchin have expressed satisfaction with them. But Robert E. Lighthizer, the United States trade representative, cautioned Congress in testimony two weeks ago that nothing was fully resolved in the trade negotiations until everything had been settled.
Though the issue has ebbed as China’s currency has strengthened in recent years, the trade war has given it new relevance. The renminbi fell 10 percent against the American dollar between February and October last year, to the intense annoyance of trade hawks in the Trump administration.
In effect, that partly offset the 25 percent tariffs the Trump administration imposed over the summer on $50 billion a year in Chinese goods. It fully offset, at least temporarily, the 10 percent tariffs that Mr. Trump imposed last fall on an additional $200 billion a year in Chinese goods.
