News / Asia

US Declines to Label China Currency Manipulator

A bank clerk counts Chinese banknotes at a branch of Industrial and Commercial Bank of China in Huaibei, Anhui province, June 8, 2012.
A bank clerk counts Chinese banknotes at a branch of Industrial and Commercial Bank of China in Huaibei, Anhui province, June 8, 2012.
VOA News
The U.S. Treasury Department said Tuesday that China's currency is "significantly undervalued," but stopped short of labeling it a currency manipulator.

The Treasury said in a semi-annual report to Congress that China did not meet the legal requirements to be named a currency manipulator, a designation that could lead to sanctions.

It noted that China has allowed the value of the renminbi to rise over nine percent against the dollar since June 2010. But it said this was insufficient, given China's strong trade surplus and large foreign exchange reserves.

China's reaction

Chinese Foreign Ministry spokesperson Hong Lei denied the accusation Wednesday.

"There is no so-called problem that the exchange rate is undervalued. China will continue to press ahead with the reform of the renminbi exchange rate in a self-initiated, controllable and gradual manner," said Hong Lei. "We hope that the U.S. side will deal with trade issues, including the exchange rate issue, appropriately so as to maintain the sound and stable development of China-U.S. trade relations."

The issue is a regular point of contention between the world's two largest economies. Washington has long accused Beijing of intentionally keeping the value of its currency low in order to give Chinese companies an unfair advantage over U.S. manufacturers.

Less of an issue?

But Jamie Metzl of the Asia Society says the value of China's currency has become less of an issue for the United States in recent years.

"China does manipulate its currency. But the only issue is actually a political one, which is that they're doing it less than they used to do it, and the United States has bigger fish to fry," said Metzl.

Metzl says the U.S. is more concerned with getting Beijing to loosen its restrictions on foreign companies doing business and China and to crack down on the massive theft of intellectual property.

Rorry Daniels of the National Committee on American Foreign Policy agrees. She says the Treasury's decision reflects President Barack Obama's desire to encourage economic reforms through a less adversarial relationship.

"I believe that China thinks that it is in their own interest to raise the value of their currency and that the Obama administration is giving them some breathing room on this issue, so that they can concentrate on other issues in the U.S.-China relationship," said Daniels.

The U.S.-China relationship was a major topic of the recent presidential election that saw President Obama re-elected to a second term. His Republican challenger Mitt Romney had taken a more aggressive approach to China, promising to label it a currency manipulator on his first day in office, if elected.

You May Like

Turkey's Erdogan: Women Not Equal to Men

Speaking at conference in Istanbul, President Erdogan says Islam has defined a position for women: motherhood More

Ahead of SAARC Summit, Subdued Expectations

Some regional analysts say distrust between Pakistani, Indian officials has slowed SAARC's progress over the year More

Philippines Leery of Development on Reef Reclamation in S. China Sea

Chinese land reclamation projects in area have been ongoing for years, but new satellite imagery reportedly shows China’s massive construction project More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid