Iowa Public Television

 

U.S. Manufacturers Disappointed with Policy on China Currency

posted on May 12, 2006


The Bush Administration this week refused to brand China as a country manipulating its currency to gain unfair trade advantages. In it's twice a year currency report to Congress, the White House said it did not believe China technically met the definition of a currency manipulator.

Much of the American business sector was not pleased with the report. The executive director of the American Manufacturing Trade Action Coalition, which represents U.S. textile and clothing companies, said, "By failing to designate China as a manipulator in this report ... the United States comes off as a paper tiger unwilling to stand up for its domestic industrial sector."

The White House decision came in spite of growing pressure in Congress to take punitive action to deal with a U.S. trade deficit with China that hit a record $202 billion last year. The report noted that China last summer announced it was abandoning a fixed link of the yuan's value to the dollar. However since that announcement, the yuan has risen in value by only about 3 percent.

Tags: China money news trade