The Set Up For Trade War

China shouldn't delay on economic reform, US Treasury chief Jack Lew says

United States Treasury Secretary Jack Lew said he would call on Chinese leaders this week to let markets determine the value of the yuan and to avoid postponing measures to overhaul their economy, even as growth falters.

"They obviously have to worry about their short-term economic situation," Lew said in an interview airing this weekend. "What they can't do is treat the long-term reforms as something they can just put off. They need to be serious about it."

As growth falters the yuan will depreciate naturally if markets determine the exchange rate.