WASHINGTON (Reuters) - The United States ruled on Friday that China was not manipulating its currency to gain an unfair trade advantage but it called the yuan "significantly undervalued" and vowed to press the Asian power for currency reforms.
WASHINGTON (Reuters) - The United States ruled on Friday that China was not manipulating its currency to gain an unfair trade advantage but it called the yuan "significantly undervalued" and vowed to press the Asian power for currency reforms. Many U.S. lawmakers argue China has gained a competitive edge over American manufacturers by keeping the yuan weak to boost exports, and Republican presidential hopeful Mitt Romney has vowed to slap a "currency manipulator" label on China from his first day in office if he wins the White House. ...
The United States said Friday that China's currency remains "significantly undervalued" but Beijing's policy was not manipulating the yuan to gain an unfair trade advantage.The US Treasury Department said it had concluded that China had not met the standards for manipulation but would continue to closely monitor the pace of appreciation of the yuan, or renminbi.
China on Thursday rejected US legislation seeking to punish Beijing for allegedly manipulating its currency, warning that pressure on the yuan issue could "severely damage" trade ties.Beijing also said the bill -- overwhelmingly approved by the US House of Representatives on Wednesday -- violates World Trade Organisation rules, and insisted it has not deliberately undervalued its currency.
The United States has determined that China is not manipulating the value of its currency, which has been a major complaint by the Obama administration.
The Treasury Department said in its twice yearly report to Congress Friday that China has taken a series of steps to liberalize currency controls and peg the value of the yuan to a more market-determined exchange rate.
But the report also says the yuan is still significantly undervalued and that the Chinese economy, as well as others in ...
WASHINGTON -- "The Obama administration may be getting tougher with China on trade on behalf of U.S. producers seeking to reduce foreign competition, but its approach in dealing with Beijing on the thorny currency issue remains patient diplomacy, especially because China's currency policy does generate huge cost advantages for American consumers and businesses purchasing their products.
One of the more mainstream, if admittedly crude, measures of the relative value of countries' currencies is The Economist's "Big Mac Index." As the magazine explains, the index "is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries." For years now, people seeking aggressive unilateral action by the US govern