January 14, 2020

Daily News Brief

January 14, 2020

Top of the Agenda

U.S. Drops ‘Currency Manipulator’ Label for China 

The United States removed its designation (WSJ) of China as a currency manipulator and praised China’s commitments to refrain from competitive devaluation of the yuan, U.S. Treasury Secretary Steven Mnuchin said.  

The removal of the label, which had been applied in August, came in a new foreign exchange report from the U.S. Treasury Department and de-escalates tensions between the countries days before Beijing and Washington are slated to sign a “Phase One” trade deal. The countries also agreed to resume semiannual trade talks (WSJ) suspended by President Donald J. Trump’s administration. Since news of the deal was announced in December, Washington has rolled back scheduled tariffs on certain Chinese goods, while China is expected to pledge to buy $200 billion–worth (Politico, SCMP) of U.S. goods in the new deal. 

Analysis

“Looks like the Treasury will get to write a [Foreign Exchange] report that undesignates China ... without ever writing a report that explains the initial designation (which was done by a press release dictated by the President it seems),” tweets CFR’s Brad W. Setser. 

“Treasury’s semi-annual report has long offered markets crucial signals about U.S. policy toward countries it deems to be manipulating their currencies. Using the report for other means—such as leverage to finalize a trade deal—risks undermining the weight of the designation if markets start to take it less seriously,” Saleha Mohsin writes for Bloomberg. 

Foreign Policy and the Democratic Primaries

CFR’s James M. Lindsay joins political analysts Margaret E. Talev and Charles Cook to discuss the international challenges Democratic presidential candidates will face if elected, today at 12:30 p.m. EST.

Watch the Event

Pacific Rim

Case of Virus in China Outbreak Found in Thailand 

The coronavirus behind a disease outbreak in China was identified in a person in Thailand for the first time, the World Health Organization (WHO) announced. The organization called for ongoing monitoring and preparedness for the possibility of the disease spreading elsewhere. 

South and Central Asia

India Orders Antitrust Investigation Into Amazon, Flipkart 

Federal regulators said they were ordering an antitrust probe (Al Jazeera) into Amazon and Walmart’s Flipkart over allegations that the e-commerce companies favored some vendors over others.  

Middle East and North Africa

Libya’s Haftar Leaves Peace Talks Without Agreement 

Renegade Libyan commander Khalifa Haftar, whose forces are waging a civil war against the country’s UN-backed government, departed from peace talks (Al Jazeera) in Moscow without formalizing a cease-fire in the country, Russia’s foreign ministry said. 

CFR’s Global Conflict Tracker looks at the civil war in Libya. 

Iran: Authorities arrested several people (CNN) in an investigation into the downing of a Ukrainian passenger plane in Tehran, a spokesperson for the judiciary said. 

Sub-Saharan Africa

Malawi’s Top Court Reports Effort to Bribe Judges

Malawi’s Chief Justice filed a complaint with the country’s anti-corruption watchdog, alleging efforts to bribe (AFP) five judges on the top court as it prepared to rule on a contentious election last year. The country’s opposition has called for the court to annul the election. 

Niger: Army chief Ahmed Mohamed was replaced (Reuters) after two recent attacks by Islamist militants killed at least 160 soldiers. Attacks in Niger have increased fourfold in the past year, according to the nonprofit Armed Conflict Location & Event Data Project.  

CFR’s John Campbell discusses the surge of jihadi violence and terror in West Africa. 

Europe

European Countries Trigger Iran Deal Dispute Mechanism 

The “E3” countries—France, Germany, and the United Kingdom—triggered a mechanism (AP) in the 2015 nuclear agreement with Iran that could allow further sanctions on the country for noncompliance with the deal, the European Union’s foreign policy chief announced. 

CFR’s Philip H. Gordon discusses the implications of Iran's noncompliance. 

France: The country will send 220 more troops (BBC) to supplement its 4,500 service members currently in West Africa to fight jihadi insurgents, French President Emmanuel Macron said at a summit with Sahel leaders. 

Americas

Haiti’s Moise Threatens Rule by Decree  

President Jovenel Moise said he may rule by decree (Reuters) later this week amid political deadlock. He said he seeks to unblock a deal (Bloomberg) with the International Monetary Fund that was frozen in March when the government dissolved.  

Venezuela: Washington sanctioned (State Department) seven current and former officials loyal to President Nicolas Maduro who were involved in delaying a recent election in Venezuela’s parliament. 

United States

U.S. to Expel Saudi Cadets After Florida Shooting Probe

The United States will expel (TIME) twenty-one Saudi service members training at U.S. military facilities after the investigation of a deadly shooting at a Florida naval base last month, Attorney General William Barr said. The Saudis were removed from U.S. training programs for sharing “jihadi or anti-American content” on social media and coming into contact with child pornography, he said.  

Global

WHO Names Urgent Challenges for Next Decade

The WHO unveiled a list of health challenges that will shape the next decade, which include elevating concern for the health implications of the climate crisis, preparing for epidemics, and investing in health workers.

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