Treasury still finds China not manipulating its currency.

Many manufacturers across the U.S. threw up their hands in collective frustration at the Treasury Dept.'s Report to Congress on International Economic and Exchange Rate Policies.

In its May 2005 report, the Treasury Dept. stopped short of finding China involved in any current wrongdoing with respect to currency manipulation. The report did state that China's foreign exchange policy was coming dangerously close to violating the Omnibus Trade and Competitiveness Act of 1988, but it failed to find any statutes that directly implicated China in intentionally "pegging its currency to the dollar" to hinder trade practices. The report also stated that if current trends persist, and if China does not adopt a market-based exchange policy, it will be found in violation of the Omnibus Trade Act.

Congress, though, is losing patience with the Treasury Dept.'s "wait and see" approach on the Chinese currency issue and wants immediate action. Many Congressional members were critical of the Treasury Dept.'s report, particularly of the fact that China was not found culpable of any illegal trade practices. Members are upset that after 10 years of Chinese currency manipulation there is no real progress being made toward stopping the practice.

The metalcasting industry worked with members of Congress prior to the report's release to convey its concerns that the Treasury Dept. is moving too slow in addressing China's currency policy.