US Urges China to Let ‘Substantially Undervalued’ Yuan Rise

The US Treasury characterized the yuan as “substantially undervalued,” and called on China to allow its exchange rate to strengthen in a timely and orderly way.

“Given China’s extremely large and growing external surpluses and now substantially undervalued exchange rate, it is important that the Chinese authorities allow the RMB exchange rate to strengthen in a timely and orderly manner in line with macroeconomic fundamentals,” the department said in a semiannual foreign-exchange report released Thursday. The RMB is the acronym for the renminbi, the official name of China’s currency.