China’s economic growth slowed to its weakest pace in 18 months, putting pressure on China’s leaders to allow the yuan to fall as a way to help troubled exporters and boost growth, and setting up a potential fight with the U.S. on trade and currency policy.
Beijing released its disappointing growth figures hours after the U.S. blasted China for its recent currency moves, calling the decline in the yuan “unprecedented” and pressing Beijing to disclose its market intervention more regularly.
The Treasury Department, in its semiannual report on currencies released Tuesday, said the weakening of the yuan would “raise particularly serious concerns” if it signals a retreat from Beijing’s publicly stated policy of scaling back intervention to let market forces play a bigger role.
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