The report on China’s currency manipulation will not be made available to Congress on the scheduled date of April 15. Director of the National Economic Council and President Obama’s senior economic adviser, Lawrence Summers said that the report would be delayed due to strategic reasons.
He said that by delaying the report, it would give them more time to tackle China’s alleged currency manipulation. Summers explained that submitting the report to Congress would only aggravate the situation with China and that would cause many problems for the U.S. during upcoming economic gatherings such as the G-20 meeting.
However, popular opinion points the finger at China’s support for the U.S. in the UN Security Council decisions which could see sanctions brought against Iran. Although China has not been in favor of the sanctions all along, last week, the country’s administration gave an indication that it just might change its stance. Summers has so far denied any such connection with the report.
The currency issue is actually one thing that has united both parties, in the sense that lawmakers from either side are pressuring President Obama to admonish the Chinese government for refusing to let the currency appreciate. According to many economists, the Chinese currency is believed to be undervalued by about 40 %. The advantage for China in doing so is that its goods become very cheap on the market which results in vast quantities being sold.
A new date of submission for the report has not been revealed yet, but the assumption is that if the economic gatherings refuse to yield any positive results against China, then Congress will soon find the reports in its lap.
