A U.S. watchdog panel is urging the US government to put pressure on China to appreciate the value of its yuan, reports Reuters.
"China's deliberately undervalued (yuan) has unfairly conferred substantial economic advantages on China to the detriment of major trading partners, principally the United States and Europe," says the U.S.-China Economic and Security Review Commission said in an annual report obtained by Reuters.
The report further says: "China's undervalued (yuan) makes China's exports cheaper and imports more expensive and it encourages foreign direct investment into China, resulting in the loss of investment and jobs in Europe and the United States."
China has defended its actions, saying its yuan policy maintains domestic economic stability and employment. Beijing has signaled that a U.S. decision to formally label it a currency manipulator would strain relations, notes Reuters.