<Anchor>

It is not a sudden action that the United States designated China as the currency manipulation nation today (6th), but it should be seen as a continuation of the trade conflict between the two countries that have been continuing since last year. As the two nations' trade negotiations, which had been anxious for the rest of the year, ended without success last month, US President Trump announced last week that he would pay 10 percent more taxes on imported goods from China in the future.

Then China immediately replied that we would not buy US agricultural products. American farmers are a very painful part of Trump, his main support base. Moreover, as the Chinese currency soared to the yuan exchange rate favorable to China, the United States began counterattacking it with a card named as the currency manipulation station.

Then, today's action will affect what China will receive in the future, and how it will affect the world trade including our country.

<Reporter>

'Porch' refers to the situation where the yuan exchange rate exceeds 7 yuan per dollar.

China has defended this 7 yuan line since May 2008.

It was due to possible capital outflows and concerns that the US could attack.

However, it is analyzed that the People 's Bank of China has tolerated the poaching in 11 years, and that it showed the willingness to use the exchange rate as a weapon to levy the US customs duty.

[Seth Suettel / AP Economist Editor: The decline in the value of the yuan (the appreciation of the yuan) will offset the US tariffs.]

The decline in the value of the yuan will increase the price competitiveness of Chinese products, making it a card to neutralize President Trump's customs duties.

The US government and investment banks have accepted that China's acceptance of Pori has largely abandoned expectations for a trade bargaining agreement.

The United States has designated China as a currency manipulator, but it is not following sanctions at the moment.

It is possible to sanction the government procurement market by prohibiting the participation of Chinese companies in the government after a one-year correction period.

Right now, it is a symbolic measure, but it is true that the US trade disputes have expanded and become prolonged.

The global economy may slow down rapidly and the financial market may become unstable due to the contraction in world trade.

[Jo Young-moo / LG Economic Research Institute] It seems that there is a growing concern that Korea has an export-dependent economic structure and that Korea, which is adjacent to China, is likely to suffer a decline in world economic growth or a decrease in trade growth rate.

The measure is based on a 25-year virtually unanimous general trade law clause, which shows that the Trump Administration can voluntarily take out a currency exchange bureau card.

South Korea is also categorized as a target country, but the government said it may be excluded from the target country in October, saying that the situation is different from China, which is experiencing trade disputes.

(Image editing: Kim, Sunck, VJ: Han, Seung-min)

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