US Treasury removes currency manipulator label on China

US Secretary of the Treasury Steven Mnuchin said China has made "enforceable commitments" not to devalue its currency to gain a competitive trade advantage. [AFP/File / Nicholas Kamm]

The United States on Monday removed the currency manipulator label it imposed on China last summer, in a sign of easing tensions between the two economic powers after nearly two years of conflict.

Just two days before President Donald Trump is set to sign a "phase one" trade agreement with China, the US Treasury said in its semi-annual report to Congress that the yuan has strengthened and Beijing is no longer considered a currency manipulator.