Administration declines to chide China over currency

WASHINGTON – The Obama administration declined Thursday to cite China for manipulating its currency to gain unfair trade advantages against the United States.

But the administration did conclude that the Chinese currency is undervalued against the dollar, in a report that it is required to send Congress.

The report noted that China on June 19 announced it was introducing more flexibility into its currency system. After showing no movement against the dollar since mid-2008, the Chinese renminbi, also called the yuan, has risen about 0.8 percent against the dollar since Beijing’s June announcement.

In a statement, Treasury Secretary Timothy Geithner said the administration will be watching the currency changes closely in coming months. The administration is required to issue the currency report every six months.

“What matters is how far and how fast the renminbi appreciates,” Geithner said.

Lawmakers on Capitol Hill criticized the findings. Some vowed to push legislation to impose stiff penalties on Chinese imports if China does not move more quickly to revalue its currency.

Sen. Charles Schumer, D-N.Y., one of China’s leading critics in Congress, said he plans to seek a vote on his legislation at the earliest opportunity.

“This report is as disappointing as it is unsurprising. It’s clear that it will take an act of Congress to do the obvious and call China out for its currency manipulation,” Schumer said in a statement.