November 29, 2005 – The Bush administration has determined in their currency report to Congress that the Chinese government is not intentionally manipulating the yuan, once again taking an extremely soft stance on Communist China.
If the administration had branded China a currency manipulator in the report, it could have been a significant step towards the U.S. government imposing trade sanctions against Chinese goods.
By purposely undervaluing their currency by as much as 40 percent, China has made its exports cheaper in world markets. As a result, the U.S. trade deficit with China was a record $162 billion last year and is expected to hit $200 billion this year.
The Bush administration’s lack of action has led Sen. Charles Schumer (D-N.Y.) and Sen. Lindsey Graham (R-S.C.) to quietly begin talks of renewing efforts to place steep tariffs on Chinese imports if the Chinese do not allow the yuan to rise in value.
“The Administration’s lack of action today hurts all Americans by refusing to acknowledge the obvious – that China manipulates its currency,” Schumer said.
Read Sen. Schumer’s entire statement.
Read the entire Associated Press article.