WASHINGTON (Reuters) - The Obama administration declined to label China a currency manipulator in a long-delayed report on Thursday, spurring fresh calls from U.S. lawmakers for tough new steps to pressure Beijing.
The Obama administration declined to label China a currency manipulator in a long-delayed report on Thursday, spurring fresh calls from U.S. lawmakers for tough new steps to pressure Beijing. Some lawmakers claim China’s yuan is misaligned in value, distorting trade and stealing U.S.
The U.S. Treasury Department again declined to label China a currency manipulator in a long-delayed report issued late on Thursday that is likely to provoke Congressional calls for tougher methods with Beijing
China Analytics submits:We still assume that US Treasury Secretary Timothy Geithner is the only spokesman in Washington whose comments on the RMB carry any weight. Let’s also assume that the current Murphy-Ryan legislation under consideration in the US Congress is but a puff of hot air that will never go anywhere because the methods used to calculate CNY undervaluation would probably not pass a formal legal challenge under WTO rules.
The US Treasury Department issued its (supposedly) Semiannual Report on International Economic and Exchange Rate Policies late this afternoon, in which it can deem countries to be "currency manipulators" under Sections 3004 and 3005 of the Omnibus Trade and Competitiveness Act of 1988.
Edward Harrison submits:The U.S. Senate will pass legislation geared to pressuring China to revalue its currency and the US is set to label China a currency manipulator. The view in Washington ahead of the mid-terms is that China is "the bad guy" as Paul Krugman explains in the video below. Here is a synopsis of the Krugman position:Complete Story »
China said Friday the yuan exchange rate must not be used as a "scapegoat" for US economic woes, ahead of a Treasury Department report that could label the country a currency manipulator."The United States can't use domestic reasons to pass on its domestic employment and economic growth problems (to other nations)," commerce ministry spokesman Yao Jian told reporters."The yuan's rate must not be the scapegoat of US domestic problems."Earlier Friday, China set the yuan at its strongest level since policymakers pledged in June to loosen their grip on the currency.