USA/FILE: U.S. Treasury Secretary Timothy Geithner sharpens criticism of China's exchange rate policies

Record ID: 573464

  • Title: USA/FILE: U.S. Treasury Secretary Timothy Geithner sharpens criticism of China's exchange rate policies
  • Date: 17th September 2010
  • Summary: UNIDENTIFIED LOCATION, CHINA (FILE) (ORIGINALLY 4:3) (REUTERS) MAN IN CHINA COUNTING MONEY CLOSE-UP OF YUAN GOING THROUGH ELECTRONIC COUNTER
  • Embargoed: 2nd October 2010 13:00
  • Keywords:
  • Topics: International Relations
  • Reuters ID: LVAEDOPMFC146Q5W2690AS5JC8K8
  • Story Text: U.S. Treasury Secretary Timothy Geithner sharpened his criticism of China's exchange rate policies Thursday (September 16), saying the yuan was strengthening too slowly and that he will look for new ways to get Beijing to move faster.
    In testimony to lawmakers considering a tough new trade law, Geithner called on China to allow sustained appreciation of the yuan over time.
    "We are concerned, as are many of China's trading partners, that the pace of appreciation has been too slow and the extent of appreciation too limited," Geithner said in remarks to the U.S. Senate Banking Committee.
    "We will take China's actions into account as we prepare the next Foreign Exchange Report, and we are examining the important question of what mix of tools, those available to the United States and multilateral approaches, might help encourage the Chinese authorities to move more quickly."
    Geithner's testimony comes amid a rising chorus of support from U.S. lawmakers and industry groups for punitive action, including a bill that would slap duties on Chinese imports to force Beijing to let the yuan rise.
    The effort is seen in part as an election year bid by lawmakers eager to show voters that they are taking action to revive the economy and are sensitive to high unemployment, although economists say currency revaluation won't by itself eliminate the U.S. trade deficit with China.
    Geithner said the undervalued yuan, or renminbi, has boosted China's exports and has encouraged the outsourcing of production and jobs from the United States.
    Geithner for much of this year took a softer approach on China's yuan, delaying a Treasury currency report for several months before declining to name Beijing a manipulator in July, shortly after Beijing's de-pegging of the yuan.
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