U.S. Declines to Name China Currency Manipulator
The Obama administration said on Tuesday that China’s currency remained “significantly undervalued,” but stopped short of labeling the world’s second-biggest economy a currency manipulator.
Although Beijing controls the pace at which the yuan can rise, the U.S. Treasury said in a congressionally mandated semi-annual report that China did not meet the legal requirements to be deemed a currency manipulator.
The label is largely symbolic, but would require Washington to open discussions with Beijing on adjusting the yuan’s value.
It has been 18 years since the U.S. Treasury has designated any country a manipulator. China was labeled a manipulator between 1992 and 1994.