The United States today reiterated its call for China's currency to be market-based, as lawmakers warned they would act if there was no movement from China on revaluing the yuan, according to Reuters. China's policy of intervening in currency markets to keep the yuan from rising to boost exports has drawn the ire of American politicians, who face elections in November at a time when the U.S. unemployment rate is stubbornly stuck at nearly 10 percent. "The president has spoken repeatedly and recently that China's currency must be market-based," White House spokesman Robert Gibbs told reporters. With China on holiday, there was no official response from Beijing to a weekend announcement that U.S. Treasury Secretary Timothy Geithner would postpone a report due out on April 15 that could have branded China a "currency manipulator." A Chinese government economist said the U.S. decision to delay the contentious report "created some room for further consultations and negotiations." "But I don't think there will be a yuan adjustment in the near-term. We need to to see whether China's export recovery will be sustained and need to see whether companies can cope with a stronger yuan," said Huo Jianguo, head of the Commerce Ministry's think-thank. A U.S. Senate Finance Committee aide said Committee Chairman Max Baucus was worried that delaying the currency decision "repeats the same failed approach to U.S.-China economic policy." "He will be watching China's actions closely in the coming weeks and months to determine what legislative steps need to be taken to ensure that China's currency practice does not harm America's ranchers, farmers and workers," the aide said.
