Chinese officials pegged the yuan at 6.9996 against the dollar Wednesday, the lowest midpoint in more than 11 years, signaling it's being hurt by tariffs, but wants to come into negotiations as an equal to the United States.  

The U.S. Treasury Department had officially labeled China a "currency manipulator" late Monday, following further escalation in the trade conflict between the U.S. and China.

China shut down the "manipulator" label in a statement from the People's Bank of China, which said that the yuan operates on a market-based exchange rate system and does not meet the Treasury's own criteria for currency manipulation.

But tying China and currency manipulation is far from a new headline. China first picked up the label in 1992 and has stayed on the watchlist ever since.

As the trade war escalates, it's easy to come up with a nightmare scenario, is officially calling China a currency manipulator really news?

Jim Cramer summed up his thoughts in a column on Real Money: "But let me ask you something: Do you think it is not? Does anyone think it isn't?"

So what does it mean for the markets? Catch Cramer's take in the video above.

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