Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Treasury delays action against China on currency

By Jennifer Liberto, senior writer


WASHINGTON (CNNMoney.com) -- The Treasury Department has again delayed a decision to label China a "currency manipulator," even as more U.S. leaders call for efforts that would penalize China for undervaluing the yuan.

The department said Friday it wanted to wait until the G-20 leaders meet in South Korea in November, hoping to see "additional progress on the important challenge of securing stronger and more balanced growth."

The statement pointed to progress China has made since it announced it June that it would allow the exchange rate to move higher. The yuan has appreciated by roughly 3% against the U.S. dollar, the statement pointed out.

The delay puts the decision off until after the Nov. 2 midterm elections, which is significant as more lawmakers campaign on the currency issue. The House in September passed a bill to authorize the Commerce Department to impose duties on imports from nations with undervalued currencies.

Earlier this year, currency experts wondered whether Treasury would name China a currency manipulator in its April report. But Treasury delayed that report until July, and then declined to label China a manipulator.

In a separate move targeting China trade, the U.S. on Friday launched an investigation into whether China has been subsidizing its wind and solar manufacturers as well as advanced batteries and energy-efficient cars.

Spurred by a United Steelworkers complaint, the investigation will look into whether China has discriminated against foreign companies and other imported goods while propping up its own domestic industry. To top of page

Index Last Change % Change
Dow 18,339.24 110.94 0.61%
Nasdaq 5,318.55 12.84 0.24%
S&P 500 2,171.37 11.44 0.53%
Treasuries 1.57 0.01 0.71%
Data as of 6:35am ET
Company Price Change % Change
Procter & Gamble Co 89.46 1.10 1.24%
Bank of America Corp... 15.38 0.09 0.59%
Chesapeake Energy Co... 6.75 0.52 8.35%
Transocean Ltd 10.02 0.60 6.37%
Micron Technology In... 17.44 -0.56 -3.11%
Data as of Sep 28
Sponsors

Sections

California's state Treasurer is suspending its business relationship with Wells Fargo over the next year due to the bank's opening of unauthorized accounts. More

With tougher enforcement of immigration laws and more undocumented workers leaving the country, American farmers say they are facing a severe worker shortage -- and they can't get American workers to fill the jobs. More

Many of the biggest tech companies are joining forces to establish best practices for developing artificial intelligence. More

A new report assesses the affordability, quality and availability of child care in every state. Connecticut ranks best overall, while West Virginia comes in last. More