Bush Cites Need For Action On Chinese Currency Imbalance
By James A. Morrissey, Washington Correspondent
Comments by President Bush and his secretary of the Treasury, John Snow, regarding a Chinese currency imbalance, were music to the ears of textile manufacturers and others who have been concerned about the way currency imbalance is resulting in a subsidy for Chinese imports. Snow told the House Financial Services Committee that reform in China is one of the highest priorities of our international economic policy, and, added that China needs to take action now on a more flexible currency. In an interview with CNBC, President Bush urged China to take interim steps toward a market-based currency.
A spokeswoman for the Coalition for a Sound Dollar, which includes textile interests, said: "We
view this as a very significant change in remarks by the Administration." She added that given
China's increase in its reserves and a burgeoning trade deficit with the United States, China
should be cited for currency manipulation in an upcoming report from the US Treasury Department.