The United States has designated China as its currency-manipulator, and the US-China trade conflict has spread to the currency war, and the International Monetary Fund (IMF) raised China's hand in the report.

The Chinese government recently stopped buying US produce in retaliation for Trump's declaration of additional tariffs.

China then allowed the renminbi to fall after breaking the 7 yuan per dollar for the first time since 2008.

The Trump government immediately put a label on China as a currency exchange bureau.

However, the IMF said in the annual report on China's economy today, "There is little evidence that the People's Bank has intervened in foreign exchange."

The IMF concluded last year that it was "not overvalued or undervalued" for the renminbi exchange rate, and concluded that it was overall stable against other currencies.

The Chinese renminbi is "usually in line with economic fundamentals," the IMF said.

The IMF just advised China to increase transparency in exchange rate policy.

James Daniel, head of the IMF's China, called on China to be more flexible in exchange rates.

The Associated Press said the IMF saw little evidence that China deliberately tried to lower its currency value, concluding that China did not operate on the exchange rate, contrary to Trump's claim.

Reuters says it is contrary to US claims.

The IMF positively commented last month that China's exchange rate flexibility has increased since 2007 and the real effective exchange rate (REER) has risen 35%.

The state-run media, based on the IMF's report, condemned the US's designation of a currency manipulator.

The Communist Party People's Daily pointed out that the IMF's conclusions point out that China is not a currency manipulator.

Subsequently, no one believes the American story, and the unfounded criticism of China is nothing but a laugh.

The People's Daily worries that some people in the United States will offset the effects of the Trump tariff by the devaluation of the renminbi.

The newspaper emphasized that "in the end, we must pursue a balance of trade and go to the extent of equality and mutual respect."

China Daily also noted in its editorial that the IMF's report shows that the US Treasury's designation of a currency manipulator is nothing but groundless criticism.

He also explained that the US has paved the way for future anti-Chinese behavior by designating China as a currency-manipulation country with ugly intent to prevent China's development.

The strong country also feared that it would be a harmful precedent that any pretext could trample its rivals irresponsibly.

Former officials of the People's Bank of China have warned of a long-term currency war between the two countries.

According to Bloomberg News, former vice-chairman of the Yuan People's Bank of China said at an event in Heilongjiang, Yichun on October 10 that the "Trade War is evolving into a financial war and a currency war."

Zhou Xiaochuan, former head of the People's Bank, says conflict between China and China can spread to other areas of trade, including politics, military and technology.

He urged a need to expand the global role of the yuan against the dollar financial system.

Chun also said China should work to increase the use of the yuan in global trade, including product purchases.