Shanghai Daily: Business - shanghaidaily.com
CHINA is not manipulating its currency to gain unfair trade advantage, the US Treasury Department said yesterday in a semiannual report to Congress. "Treasury concluded that neither China nor any other major trading partner of the US met the requirements for designation" as a manipulator of their currency, the report said. However, the report said the Chinese yuan remains severely undervalued against the US dollar, claiming the recent movement of the yuan had been "too limited and modest." The Treasury issues the report twice a year according to a 1988law, which requires the department to analyze trading partners' foreign exchange policies and determine whether currency manipulation to gain unfair trade advantage is occurring. Under the law, economic sanctions can be imposed on countries found in violation.