WASHINGTON — The Bush administration turned aside demands from Congress and industry that it formally accuse Beijing of “manipulating” its currency in order to give Chinese companies an unfair edge over American competitors.

Treasury Secretary John Snow chose the gentler tactic of announcing yesterday that it is “a matter of extreme urgency” that Beijing allow the yuan to rise faster and further against the dollar.

The decision to avoid labeling Beijing a currency manipulator means that while the U.S. is on record formally criticizing Chinese policy, Congress is deprived of a weapon it could use to justify economic retaliation.
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