US Treasury Secretary ‘Won’t Lose Any Sleep’ Over China Selling US Bonds

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But Donald Trump has warned there is "a lot more to do" to hurt China as relations between the two economic rivals went into meltdown over a spy row.

Mr Trump lashed out as as senior White House figures accused China of trying to destabilise U.S. democracy and presenting the most serious threat to its security.

The US Energy Department said it would make it more hard to ship nuclear technology to China, one of the few growing markets for new plants as the Asian economy tries to meet rising electricity demand through low-carbon sources.

He also blamed previous US presidents for allowing China to pursue unfair trade practices and said he had to tell Beijing, "It's over".

China has responded by imposing counter tariffs, which the Trump administration alleges show political interference by targeting products from key states in next month's congressional elections.

"China's trade surplus will keep rising because the domestic economy is cooling down", said Andy Xie, a Shanghai-based independent economist.

Imports grew 14.3 percent, slightly missing forecasts, customs data showed Friday. "I said it's over".

"We were led badly when it came to trade", Trump told "Fox & Friends".

"I expressed my concerns about the weakness of the currency".

Trump warns there is 'a lot more' he can do to China
China’s Exports, Imports Grow, as Does Trade Surplus With US

But US Treasury Secretary Steve Mnuchin said Friday he is not "losing any sleep" over the prospect of China selling its stockpile of US government bonds, CNBC reported.

Mnuchin said in the discussions he had with the Chinese they had made clear that they did not see a further weakening of the Chinese yuan as being in their interests.

But as USA interest rates have risen, the U.S. dollar has strengthened further, which makes American exports more expensive.

The jibe hits at a sensitive area for the U.S. and other Western nations long concerned with protecting intellectual property and preventing improper technology transfer to China lest Beijing gain a competitive advantage.

China's trade surplus with the United States ballooned to a record $34.1 billion in September, despite a raft of USA tariffs, official data showed Friday, adding fuel to the fire of a worsening trade war.

"It's obvious that the immediate effects of the trade war are the exact opposite of what the Trump administration had been planning", said Andrew Polk of Trivium China, a Beijing-based economics research firm.

Mnuchin has said since July that Treasury is concerned about the yuan's recent drop.

"The way the US has structured the tariffs encourages frontloading because firms that know they're going to hit with tariffs would rather pay 10 percent than 25 percent", he said.

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