White House: China Not Manipulating Money

I think this has to go in the Journal of Irreproduceable Results
Yahoo! News
The Bush administration on Monday determined that China was not manipulating its currency to gain economic advantages but still pressed the Chinese to move more quickly to allow the yuan’s value to be set by market forces.

So, let me get this straight. China is not manipulating it’s currency, but it should stop doing it more quickly!

Treasury Secretary John Snow said China’s decision to allow a small revaluation of its currency last July had been a factor in deciding not to brand China a currency manipulator, but he said more must be done.

So it worked? I was sure no one would fall for that sucker move of China’s, but they did.

American manufacturers believe that China has purposely kept its currency undervalued by as much as 40 percent, making Chinese goods cheaper for U.S. consumers and making American products more expensive in China.

China in July announced that it was allowing its currency, which had been pegged tightly to the U.S. dollar, to rise in value by 2.1 percent.

A little high school math tells me the chinese moved just a little over 5% in the direction they need to go.

It’s no wonder Business Groups Rally Against Bush Administration

In the wake of President Bush’s recent trip to Asia, a coalition of U.S. business groups is assailing the administration for failing to press China to revalue its currency, which many say unfairly favors Chinese manufacturers and constitutes a violation of China’s free-trade obligations.

More than 40 manufacturing trade groups, including the Steel Manufacturers Association, have formed the China Currency Coalition with the U.S. Business and Industry Council to oppose what they consider China’s illegal manipulation of its currency. The Coalition favors passage of a Congressional bill that would allow U.S. businesses to file suit against China with the World Trade Organization on the grounds of currency manipulation.

“Any casual observer can see that China is manipulating its currency,� said Doug Bartlett, co-chairman of the coalition. “We have been extraordinarily lenient in granting them time to make necessary currency reforms.�

I love this quote:
“We’re not competing with Chinese businesses,� Bartlett said. “We’re competing with the Chinese treasury, and it would take a superhuman effort to win that battle.�

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