Posted on 03/11/2005 11:52:01 PM PST by maui_hawaii
WASHINGTON (MarketWatch) - U.S. Treasury officials are examining differing numbers about China's trade surplus in an attempt to determine whether the Asian nation is manipulating its currency.
China's global trade surplus as reported by its trading partners "differs markedly" from official Chinese statistics, according to a Treasury report to Congress.
"Treasury is undertaking an investigation to see how this arises and what, if any, of the difference can be reconciled," the report said.
The department is not accusing China or any other country of manipulating their currencies in the report released Friday.
One factor behind the differing numbers may be that trade to and from China travels via Hong Kong, the report said. Hong Kong is a Chinese territory which operates under special administrative status.
Treasury reviews exchange rates, trade balances and other economic indicators to determine if a country is misrepresenting its currency.
China, Taiwan and South Korea manipulated their currencies during different periods between 1988 through 1994, according to the report.
Velly Interesting!!
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