From the Summary: "Many Members of Congress charge that China's policy of buying foreign reserves to influence the value of its currency constitutes a form of currency manipulation intended to make its exports cheaper and imports into China more expensive than they would be under free market conditions. They further contend that this policy has caused a surge in the U.S. trade deficit with China and has been a major factor in the loss of U.S. manufacturing jobs. Threats of possible congressional action led China to make changes to its currency policy in July 2005, which has resulted in a modest appreciation of the yuan. However, many Members have expressed dissatisfaction with the pace of China's currency reforms and have warned of potential legislative action. This report summarizes the main findings CRS [Congressional Research Service] Report RL32165, 'China's Currency: Economic Issues and Options for U.S. Trade Policy', by Wayne M. Morrison and Marc Labonte and will be updated as events warrant."
CRS Report for Congress, RS21625