WASHINGTON – The National Association of Manufacturers (NAM) on Wednesday released a statement expressing regret that the U.S. Treasury Dept. currency report did not cite China for currency manipulation.
“A year ago, Treasury said that China’s currency regime was highly distorting and that if current trends continue without substantial alteration, China will likely meet the technical requirements of the statute for designation,” said NAM President John Engler. “Since last spring’s report, China’s buildup of currency reserves to suppress the yuan has doubled, from about $20 billion a month to over $40 billion a month.”
Engler described the situation as a “missed opportunity” to pressure China.
The treasury report did say China is intervening heavily in currency markets and must take action to remedy the situation.
“That is an important statement and one that we hope China will take seriously,” Engler said. “However, the decision that China has not met the technical requirements for citation is prompting legislation in Congress.”
“The NAM is particularly concerned that any congressional proposal remains WTO-compliant,” Engler added. “The issue of China’s currency is extremely important, but at the same time we have to achieve the reforms in ways that don’t undermine global trade rules.”