The US government said on Friday that neither China nor any
other major trading partner of the United States is violating a US
law against currency manipulation to gain unfair trade
advantages.
In an annual report to the US Congress, the Treasury Department
said that "no major trading partner of the United States met the
technical requirements" laid out in the 1988 law concerning
problematic currency manipulations for unfair trade advantages.
A 1988 US law requires the Treasury Department to analyze other
countries' exchange rate policies and determine whether such
manipulation is occurring and the US government can impose trade
sanction on countries found in violation of the law.
On China, the report said that "the US government will pursue
persistently and firmly its approach to promote economic, financial
and market reforms in China and assist China to move as soon as
possible to a flexible exchange rate regime."
(Xinhua News Agency December 4, 2004)