US: China is not manipulating currency
( 2003-10-31 10:17) (Xinhua)
The US government said
Thursday that China is not violating an American law against currency
manipulation to gain unfair trade advantages.
In an annual report assessing the currency policies of major US trading
partners, the US Treasury Department said China's decision to keep its currency
tightly linked to the US dollar did not meet the "technical requirements" laid
out in a 1988 law that sets forth economic sanctions that can be imposed for
countries found to be in violation.
The finding came despite complaints from manufacturers in the United States
that China's actions have played a major role in the loss of 2.7 million
manufacturing jobs over the past three years.
Testifying in the US Congress on the report, US Treasury Secretary John Snow
said the Bush administration would continue to keep up its diplomatic pressure
on China to drop its tight peg to the dollar.
However, many US economists said the loss of manufacturing jobs in the
country is the result of enhancing productivity which resulted in cutting jobs
in the US factories other than the increasing imports from foreign countries.