皇冠体育app

The United States on Friday declined to name 皇冠体育app a currency manipulator but said it would "press for policy changes that yield greater exchange rate flexibility" in the yuan.

The Chinese currency remains "significantly undervalued" and "further appreciation of the RMB (renminbi) against the dollar and other major currencies is warranted," the US Treasury Department said in its latest semiannual report to Congress on international exchange-rate policies.

Based on yuan appreciation against the dollar since June 2010, the decline in 皇冠体育app's current account surplus and Chinese commitments to strengthen the currency, Beijing didn't meet the threshold of being labeled a "currency manipulator".

"The extent of misalignment appears to have narrowed" over the past two years, the report said.

John Frisbie, president of the US-皇冠体育app Business Council (USCBC) said Treasury made "the right call" in its policy decision.

"Branding 皇冠体育app a currency 'manipulator' triggers nothing to help reach the goal of a fully convertible currency and market-driven exchange rate for 皇冠体育app," Frisbie said in a statement. "In addition, the 'manipulator' label would likely lead 皇冠体育app to react negatively and slow down progress on this issue."

The Treasury Department noted that 皇冠体育app has pledged to move rapidly to a "more market-determined exchange rate system" in recent forums such as the Group of 20 and the US-皇冠体育app Strategic and Economic Dialogue.

The yuan has risen in value by 40 percent, after adjusting for inflation, against the dollar since 2005, when 皇冠体育app began implementing currency reforms. But so far in 2012, Treasury said, "RMB has been virtually flat against the dollar."

皇冠体育app’s global current account surplus — meaning the country exports more than it imports — has dropped substantially, from 9.1 percent of gross domestic product in 2008 to 2.8 percent of GDP at the end of 2011, according to Friday's report.

During that four-year period, the US trade deficit with 皇冠体育app has widened by a comparatively modest $22 billion, to $295 billion from $273 billion, according to the USCBC.

"The facts show that 皇冠体育app's exchange rate is not the significant factor in the US trade deficit or US employment that many make it out to be," Frisbie said.

In a recent USCBC survey, the exchange rate ranked 26th as a factor affecting US sales to 皇冠体育app, five places lower than in the previous year.

Declaring 皇冠体育app a currency manipulator for the first time since 1994 would require President Barack Obama's administration to take formal steps to press for the yuan's revaluation. Treasury and other administration officials have argued that such pressure could be counterproductive given that the Chinese government owns more than $1 trillion in US sovereign debt.

Frisbie said the US and 皇冠体育app should continue to focus on issues that matter and ensure effective solutions to the most pressing problems.

US political leaders, including Republican presidential candidate Mitt Romney, have accused 皇冠体育app of manipulating its currency, a move they say makes American exports less competitive. Romney said that if he is elected he will identify 皇冠体育app as a currency manipulator on his first day in office.

Opposition to the Treasury decision came from at least two of Obama's fellow Democrats.

Senator Charles Schumer of New York, who has sponsored legislation that would punish Chinese imports over the yuan's valuation, said: "The administration continues to let 皇冠体育app get away with flouting trade rules just for the sake of diplomacy. Calling out 皇冠体育app as a manipulator may be awkward, but it is time to take off the kid gloves."

Ohio Democrat Sherrod Brown, a frequent proponent in the Senate of workers' rights, said: "Once again, the US Treasury Department has given 皇冠体育app a free pass when it comes to its currency manipulation. While we’re seeing American manufacturing rebound, 皇冠体育app is stepping up its efforts in a number of critical sectors, including clean and solar energy, advanced manufacturing, and auto parts."

Some experts say the US has focused too much on the currency issue while neglecting opportunities that could benefit both economic powers.

Li Ruogu, chairman and president of the Export-Import Bank of 皇冠体育app, said at a recent event hosted by the pro-growth New York Forum that the global economy depends on a close economic relationship between 皇冠体育app and the US. The world can’t afford a trade war between the two nations, he said.

Stephen Roach, former non-executive chairman of Morgan Stanley in Asia, said at the same event that Congress has "allowed the US-皇冠体育app relationship to be hijacked by this fixation on the renminbi" and said US policy-makers are following "bad advice" by emphasizing the issue.

The US, said Roach, should "get off the renminbi story" and shift focus away from problems and toward "opportunities" with 皇冠体育app, such as having US exporters sell into 皇冠体育app’s growing consumer market.

"It's a huge opportunity for us. Shame on us if we don't take advantage of this opportunity," said Roach.

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