Home>News Center>China
       
 

White House: China not manipulating money
(AP)
Updated: 2005-11-29 06:33

The Bush administration on Monday determined that China was not manipulating its currency to gain economic advantages but still pressed the Chinese to move more quickly to allow the yuan's value to be set by market forces.

The administration's determination, made in a currency report it is required to submit to Congress every six months, disappointed critics who contend that Chinese currency practices play a large role in America's soaring trade deficits.

The Bush administration on Monday determined that China was not manipulating its currency to gain economic advantages but still pressed the Chinese to move more quickly to allow the yuan's value to be set by market forces.
A man lays out various denominations of the Chinese yuan, in Beijing. [AFP]

"The administration's lack of action today hurts all Americans by refusing to acknowledge the obvious — that China manipulates its currency," said Sen. Chuck Schumer.

Schumer, D-N.Y., is a leading sponsor of legislation that would impose 27.5 percent tariffs on all Chinese imports unless China does more to allow its currency to rise in value against the dollar.

Treasury Secretary John Snow said China's decision to allow a small revaluation of its currency last July had been a factor in deciding not to brand China a currency manipulator, but he said more must be done.

The United States had a trade deficit of $162 billion with China last year, the largest ever recorded with a single country, and this year's deficit is expected to approach $200 billion.

American manufacturers believe that China has purposely kept its currency undervalued by as much as 40 percent, making Chinese goods cheaper for U.S. consumers and making American products more expensive in China.

China in July announced that it was allowing its currency, which had been pegged tightly to the U.S. dollar, to rise in value by 2.1 percent. The Chinese said they would allow the currency to fluctuate by as much as 0.3 percent on a daily basis. However, over the past four months, the yuan has gained less than one percent against the U.S. dollar.

Snow led a U.S. group which included Federal Reserve Chairman Alan Greenspan to China in October to urge the country's government to allow a greater revaluation of the yuan. President Bush made a similar appeal to Chinese leaders this month when he visited China.
Page: 12



HK greets Shenzhou VI astronauts
134 killed, 15 trapped in Heilongjiang coal mine blast
Taiwan residents rally to denounce Chen Shui-bian
  Today's Top News     Top China News
 

White House: China not manipulating money

 

   
 

Coal mine blast leaves 134 dead, 15 missing

 

   
 

China: Bird flu virus in humans mutating

 

   
 

China cuts off water along poisoned river

 

   
 

Crack found in levee after earthquake

 

   
 

Number of HIV/AIDS patients reach 130,000

 

   
  Water supply restored to parts of Harbin
   
  Airbus signs deal with East Star
   
  Mongolian president arrives for state visit
   
  Series of accidents haunt weekend
   
  Guangzhou stages run in aid of cancer research
   
  Damaged scripture hard to restore
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
Bank adviser sees yuan changes, but gradual
   
Snow: Punitive bills on China 'ill-conceived'
   
Wen: Renminbi rate reform a gradual process
   
US takes patient tack on yuan policies
   
China abolishes yuan-dollar peg, adopts floating rate
   
Central bank adviser backs yuan rate policy
   
Yuan stability faces pressure: central banker
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement