China not a currency manipulator: US Treasury

The US Treasury once again declined to label China a currency manipulator, China Today reported. Some US manufacturers, and members of the government, have accused the Chinese government for keeping its exchange rate against the dollar artificially low, and have claimed that as the principal reason behind the US’s US$233 billion trade deficit with China - one third of its US$758 billion deficit with all trade partners. In its semi-annual currency report, the US Treasury said China did not “match” the technical standards of a country that manipulates its currency to obtain unfair trade advantages. The Chinese government’s maneuvering over the RMB does not mean it is aiming to achieve an unfair trade advantage, the report said. The Senate Banking Committee is currently endorsing a bill that tightens the definition of currency manipulation.