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The US has dropped its designation of China as a “currency manipulator.” As the two countries prepared to sign phase one of their trade agreement on Jan. 15, the US Department of the Treasury reversed its decision to label China as a currency manipulator in its semi-annual report on the foreign exchange policies of major US trading partners. “Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the report reads. The preliminary pact that is set to be signed on Wednesday includes a section designed to prohibit Beijing from manipulating its currency to gain advantages in international trade. South Korea, however, remained on the US’ “watch list” for currency manipulation.