So much for Change…
The Associated Press reports that “the Obama administration on Thursday declined to name China as a country that is manipulating its currency to gain unfair trade advantages.”
“The Treasury Department did say it has “serious concerns” about a lack of flexibility in the value of China’s currency against other currencies, and the country’s rapid accumulation of foreign exchange reserves including U.S. dollars.”
“The administration’s decision came in a report the Treasury is required to submit to Congress twice a year. Based on a 1988 law, the administration must designate countries judged to be manipulating their currencies to boost their exports to the United States or make U.S. products more expensive in overseas markets.”
Obama promised to take a tougher stance against China on trade issues
during his campaign for the White House last year. He pledged to take a tougher approach to China than the Bush administration did. He said the failure by Bush and Paulson to label China a currency manipulator was “unacceptable,” and he endorsed legislation to let US companies seek import duties to compensate for the advantage an undervalued currency gives their Chinese competitors.
But in both the April and the current October report, the administration declined to name China a currency manipulator.
Here’s the story from the AP: http://tinyurl.com/ygw5afp