December 20, 2006 – The Bush administration has once again failed to brand China a currency manipulator, upsetting many leading Congressional Democrats.
In their twice-yearly report to Congress, the U.S. Treasury Department said China did not meet the “technical requirements for designation” as a currency manipulator.
Sen. Christopher Dodd (D-Conn.) and Rep. Sander Levin (D-Mich.), who will lead the Senate Banking Committee and the Ways and Means trade subcommittee respectively, pledged to hold hearings early next year challenging the decision.
“China’s currency manipulation is having a substantial adverse effect on the American economy, creating an unfair playing field for American companies and hurting millions of American workers,” Dodd said in a statement.
By undervaluing their currency by up to 40 percent over the last decade, China has cost the U.S. thousands of manufacturing jobs. The artificially low yuan also led to the U.S.’s record $202 trade deficit with China last year.