As long as US companies make fortunes from cheap Chinese labor, they never will.
It would have been interesting to see if Mitt Romney would have kept his promise to label them a manipulator on Day 1. I somehow doubt it.
The rest of the headlines:
- US notes yuan has appreciated 10% against the dollar since June 2010
- Treasury says yuan remains ‘significantly undervalued’
- Will closely monitor Japan’s policies to the extent they support growth of domestic demand
- Will push for concrete adherence to recent G7 and G20 commitments
- The full text of the report (PDF)
Here is the pertinent part on Japan:
In Japan, economic performance and continuing deflation were key issues in last year’s election, and the Abe Administration came to office committed to reinvigorating growth and escaping deflation. Early statements by Japanese officials suggested that policies would, in part, be directed towards “correcting” yen strength, and there were proposals by some outside of government to ease monetary policy by purchasing foreign bonds. However, Japanese officials subsequently disavowed these statements. The Japanese government joined the G-7 statement of February 2013, affirming that their policies would be based on domestic objectives using domestic instruments, and would not target exchange rates. Since then, Japanese officials clearly ruled out purchases of foreign assets and have refrained from public comment on the desired level of the exchange rate. On April 4, the Bank of Japan announced a new monetary policy framework, which includes accelerated purchases of domestic assets to achieve a domestic inflation target of 2 percent. We will closely monitor Japan’s policies and the extent to which they support the growth of domestic demand.
