"White House: China Not Manipulating Money"

WASHINGTON (AP) - The Bush administration determined Monday that China was not manipulating its currency to gain economic advantages, but it still pressed the Chinese to move more quickly to allow the yuan's value to be set by market forces.

The administration's determination, made in a currency report it is required to give Congress every six months, disappointed critics who contend that Chinese currency practices play a large role in America's soaring trade deficit.

"The administration's lack of action today hurts all Americans by refusing to acknowledge the obvious - that China manipulates its currency," said Sen. Chuck Schumer, D-N.Y.

Schumer and Sen. Lindsey Graham, R-S.C., are leading sponsors of legislation that would impose 27.5 percent tariffs on all imports from China unless China does more to allow its currency to rise in value against the dollar.

http://apnews1.iwon.com/article/20051128/D8E5P9OO4.html