The banking committee of the United States Senate has said it will introduce legislation on Tuesday that could influence the US Treasury Department's position on China and currency manipulation, Reuters reported. The bill would change the definition of currency manipulation, pushing the Treasury Department to use that label on China if passed into law. "I have long believed that China manipulates its currency, thereby giving it an unfair trade advantage. Although evidence gathered by the Treasury clearly supports this conclusion, Treasury has regrettably declined to label China a currency manipulator," said Senator Richard Shelby, who helped introduce the bill. The announcement comes a day before the Treasury Department is to release a semi-annual report on foreign currency practices, which is expected not to explicitly label China a currency manipulator. US Treasury Secretary Henry Paulson has said he does not believe legislation is the best way to make China move more quickly on currency reform.
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