Could someone explain why this part makes sense?<p>> after the country’s central bank allowed the yuan to fall<p>They got taxed extra, limiting the economy / exports. This means less interest in investment in their market and currency. That seems like a legitimate reason for the currency to lose its value in relation to the country taxing it.<p>Why is there an implication that this is "allowed" or a strategic response? Not claiming it isn't, and I see how it benefits China in some ways - I'd just like to understand how it's different from a non-manipulated price drop.
In case anyone else was curious, it seems the penalties for being so labelled are enforced through the imposition of tariffs [0].<p>If the IMF / WTO agree with the Fed's characterization (which is doesn't currently look like will be the case, from what I read in the parent article), then it could have broader impacts, i.e. by the imposition of tariffs by companies which are not currently in a trade war with China.<p>However, since the US is already levying (heavier) tariffs against China, this is currently being viewed as more of a public / foreign relations move, as it seems unlikely that it will trigger even stronger tariffs.<p>[0]: <a href="https://www.nytimes.com/2019/05/23/us/politics/trump-currency-manipulators.html" rel="nofollow">https://www.nytimes.com/2019/05/23/us/politics/trump-currenc...</a>