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US will not launch China currency probe

The US will not launch an investigation into allegations that value of China’s currency acts as a form of export subsidy, state media reported. Countervailing duties had been called for on imports of Chinese-made aluminium and paper products, but the US Commerce Department said the "two allegations before it that China’s currency practices constitute an unfair subsidy under US countervailing duty law failed to meet the requirements for the initiation of an investigation." The Commerce Department stated that it will not investigate whether or not "the alleged undervaluation of China’s currency" is a countervailable subsidy. The response from some US politicians and industry groups was that of disappointment. "It’s clear that China games the system by manipulating its currency," said Ohio Senator Sherrod Brown. "I’m disappointed that the Obama administration has yet to recognize this fact."

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