Timothy Geithner is Treasury Secretary-designate.
/ AP Photo
WASHINGTON (AP) -- It's a sign the Obama administration may take a harder economic line with China than the Bush administration has.
Treasury Secretary-designate Timothy Geithner says President Barack Obama believes China is "manipulating" its currency.
But at the same time, Geithner is suggesting that now might not be the right time to brand China a currency manipulator under U.S. trade law. Such a designation would trigger negotiations between the two countries and could result in U.S. economic sanctions against China.
American manufacturers have long sought to have China declared a currency manipulator, something the Bush administration declined to do. U.S. manufacturers say the Chinese currency is significantly undervalued, making Chinese goods cheaper for U.S. consumers and American products more expensive in China. That, in turn, has led to a soaring U.S. trade deficit with China.
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