Tough Talk On China

The Bush Administration criticizes China on its currency policies

The Bush Administration sounded the alarm last week against what it says is a growing threat to the U.S. economy: the value of China's currency. For 10 years, Beijing has fixed the value of the yuan at 8.28 to the dollar. But as the value of the dollar has fallen, complaints from U.S. manufacturers have grown louder that if the yuan were allowed to rise to its true value, Chinese imports wouldn't be so cheap, compared with U.S.- made products. "The situation right now with China's currency," Treasury Secretary John Snow told TIME, "is risky and unsustainable."

And he is backing up...

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