Tuesday, May 31

Administration: China not a currency manipulator

WASHINGTON-the Obama administration on Friday to cite China for manipulating its currency trade advantages against the United States to win rejected but the pace said the currency the increase against the dollar needs to be accelerated.

Noted the Treasury Department, that China has its currency against the dollar since June last year rise allows, but it said Beijing needs to make a more rapid progress. America's trade deficit with China hit a record high last year.

The Department statement came in a report, that it must submit to Congress every six months determines whether other countries edit their currencies. Manufacturer press was for China to be called. This could result in penalty tariffs on Chinese imports.

US manufacturers believe that China's currency against the dollar to as much as 40% undervalued. This makes Chinese were cheaper in the US market and American products more expensive in China.

China's trade deficit with the United States $273 billion taken in the last year the largest deficit, which the United States has ever had with any country. Critics claim that China will keep its currency it against the dollar as a way to an attack, which is more support at a time of high unemployment in the United States undervalued manipulate gained against unfair trade advantages.

The report found the Treasury Department, that currency to 5.1 percent in value against the dollar announced China since last June as Beijing has increased is, that it would again included, so that to appreciate its currency. The report said, upgrading a faster 9 percent on an annual basis different inflation rates between the two countries taking into account.

But private economists said that on the basis of trade China really much at all moved currency not given risen against the dollar, the dollar against many other currencies has fallen. For this reason, they claim that China probably will increase significantly surplus its global trade in this year.

Analysts said that Treasury call refusal China was not unexpected, but the decision will likely add fuel complaints that Washington needs to take a tougher approach in trade with China.

"The continuing high bilateral trade deficit, which is running the United States with China and a weak U.S. labor market to get China's monetary policy on the radar of US politicians for some time, be", said Eswar Prasad, a China expert at Cornell University.

Nicholas Lardy, an economist at the Peterson Institute for international economics, a Washington think tank, said that while China's trade surplus with the United States and the rest of the world shrank during the global recession, it is this year rise significantly add to the pressure on policy makers to do something.

For a response to the report, an official at the Chinese Embassy in Washington, said that China's currency, the renminbi in the value against the dollar has increased and he said that would continue.

"China will further accelerate the reform of the Renminbi exchange rate regime under the principles of independent decision making, controllability, and Graduality," Embassy spokesman Wang Baodong said.

The Obama administration and the Bush administration have quoted never Beijing report currency, believe that they more can be successful with arguments, that would be such a move in China's advantage.

The new report the point made by Treasury Secretary Timothy Geithner, would made a stronger Chinese currency Beijing to better control to enable rising inflationary pressures in China.

The new report was planned on April 15, but Geithner announced it would be delayed, to manage a give the opportunity to meet with the Chinese for the annual meetings of the US-China strategic and economic dialogue, which took place this year on May 9-10 in Washington.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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