Singapore should undertake reforms that will lower its high saving rate and boost low domestic consumption, while striving to ensure that its real exchange rate is in line with economic fundamentals, in order to help narrow its large and persistent external surpluses, the US report says.

Countries with a current-account surplus with the US equivalent to 2% of gross-domestic product are now eligible for the list, down from 3%.

Other thresholds include persistent intervention in markets for a nation’s currency, and a trade surplus of at least US$20 billion.

Countries that meet two of the three criteria are placed on the watch list.

China only meets one of the criteria, but Treasury says it’s on the list because of its large trade surplus with the US.