This report summarizes China's economic issues and its currency manipulation, intended to make its exports cheaper and imports into China more expensive than they would be under free market conditions.

This report discusses the United States counterterrorism cooperation with China after the terrorist attacks on September 11, 2001. This effort raised short-term policy issues about how to elicit cooperation and how to address China's concerns about military action (Operation Enduring Freedom). Longer-term questions have concerned whether counterterrorism has strategically transformed bilateral relations and whether China's support has been valuable and not obtained at the expense of other U.S. interests.

Many Members of Congress charge that China's policy of accumulating foreign reserves (especially U.S. dollars) 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. Although China made modest reforms to its currency policy in 2005, Members contend the forms have not gone far enough and have warned of potential legislative action. This report summarizes the main findings CRS Report RL32165, China's Currency: Economic Issues and Options for U.S. Trade Policy.