The end of the trade war between the United States and China appears to be unlikely, following a US government accusation of currency manipulation, according to a report in Foreign Policy magazine.
The US Treasury formally designated China as a "currency manipulator" under a decision by US President Donald Trump after Beijing devalued the yuan below the symbolic level of 7 yuan against the dollar.
Accusing China of currency manipulation is of great importance to both US and Chinese policy, writes James Palmer. In the United States, the impact of the decision to classify China in this way seems to have been harsh on Beijing.
But for China, the issue looks much deeper in countries where currency and foreign exchange are national issues.
The Great Yuan
"In China, state media are regularly reporting on the possibility that the Chinese yuan will replace the dollar as a global reserve currency, so it seems unlikely that Chinese leaders will allow the US to push for the yuan's appreciation, as in the past with Japan to increase the yen," the writer says. .
The future of the trade war
The author believes there are no clear signs of ending Trump's trade war.
He says individual actions that contribute to the deepening of the crisis in one way or another are one reason why the reaction to China's accusation of currency manipulation is so strong.
But China believes that its relationship with the United States has been declining recently.
"The trade war seems to be a manifestation of the gradual separation of bilateral relations between the two countries, which could continue for a long time even after the end of Trump's rule.
A blow to American universities
US universities, which deal with visa restrictions on Chinese students, are likely to receive another blow from the devalued yuan, the author said.
He said it is likely that fewer Chinese students traveling abroad will serve the interests of the Chinese government, which increasingly questions the importance of foreign education.