The U.S. Treasury Department as part of its semiannual report to Congress on International Economic and Exchange Rate Policies again determined that China did not meet the legal definition for currency manipulation.
Failure to designate China as a currency manipulator prevents the triggering of a process that could lead to trade sanctions designed to alleviate China's unfair currency advantage.
American Manufacturing Trade Action Coalition (AMTAC) Executive Director, Auggie Tantillo reacted to the U.S. Treasury Department's refusal to designate China as a currency manipulator by stating, "U.S. manufacturers and their workers are deeply disappointed by yesterday's announcement and the repeated refusal of the Bush Administration to properly designate China as an unfair manipulator of their currency."
"China's currency undervaluation and manipulation is blatantly obvious. Congress's first order of business when they return should be to pass the Ryan-Hunter anti-currency manipulation legislation," Tantillo stated.
Tantillo went on to note the condescending and misguided nature of the Treasury report. For example, one of the Treasury Department's major findings states, "China needs to rebalance its economy: boosting domestic demand and consumption-led growth; reforming its financial system; and achieving greater flexibility in its exchange rate regime."
Tantillo added, “It is laughable for U.S. government officials who have presided over record budget deficits, record trade deficits and lax credit policies that have ushered in the devastating real estate and credit crisis to be lecturing other countries on the need to address internal economic problems.”
“Instead of hoping that China “rebalances its economy” the Bush Administration should be taking the steps necessary to prevent China's unfair and illegal activity from further damaging the U.S. economy,” Tantillo concluded.
American Manufacturing Trade Action Coalition
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