What it means if Trump names China a currency manipulator

IndustriesAssociated Press

President-elect Donald Trump has vowed to name China a currency manipulator on his first day in the White House. There's only one problem - it's not true anymore.

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It's been years since the world's second-biggest economy has pushed down its currency to benefit Chinese exporters. And even if China were attempting a manipulation, the law targeting manipulators requires that the U.S. spend a year negotiating a solution before it can retaliate.

Still, the U.S-China trade relationship is lopsided with China selling a lot more to the U.S. than it buys. The resulting trade deficit in goods amounted to a staggering $289 billion through the first 10 months of 2016.

A former Commerce Department official, Amanda DeBusk, says naming China a currency manipulator is mostly "just a jaw-boning exercise."