AAM blasts Treasury over China, Japan currency manipulation

WASHINGTON (Oct. 20, 2014) — The Alliance for American Manufacturing (AAM) has criticized the Treasury Department for failing to single out China and Japan as currency manipulators in its 12th annual Report to Congress on International Economic and Exchange Rate Policies.

Released Oct. 15, the report said little about Japan and commended China for lessening its currency manipulation.

“In China, the gradual appreciation of the RMB (China's Renminbi currency) this summer and low apparent levels of intervention indicate some renewed willingness by the authorities to allow a stronger domestic currency and to reduce intervention,” Treasury said in a press release.

The AAM said the agency ignored the obvious in failing to call out China and Japan, said AAM President Scott Paul.

“The decision by the Treasury Department to avoid naming China and Japan as currency manipulators sends a clear signal to our trade partners that the welcome mat is out for mercantilism,” Mr. Paul said.

Treasury has condemned China and Japan in the past for currency manipulation, according to the AAM. “But with this report, their words appear empty and without force,” it said.

Mr. Paul wrote Treasury Secretary Jack Lew Oct. 8, urging him to crack down on currency manipulation by China and Japan.

“It is essential for U.S. industry and workers — and Congress — to know that Treasury is willing to step forward to deter currency manipulation,” Mr. Paul wrote in the letter.