U.S. senators press Treasury to address China currency practices after G7 summit

Traders Union
All News
Financial News
Senators press China currency

Highlights

Senators Elizabeth Warren and Rick Scott urged Treasury Secretary Scott Bessent to address China's opaque currency interventions, routed through state-linked banks and funds.
Lawmakers cite China's projected $1.2 trillion trade surplus in 2025—nearly 70 percent of global surpluses—as evidence of distortive currency practices impacting U.S. industry.
The senators recommend including a potential formal manipulation finding in the next Foreign Exchange Report and advocate for coordinated G7 pressure on China post-summit.

Lawmakers call for Treasury action

As reported by the Senate Committee on Banking, Housing, and Urban Affairs, Senators Elizabeth Warren and Rick Scott sent a bipartisan letter to Treasury Secretary Scott Bessent calling for decisive action on China’s exchange-rate practices.

In the letter, the lawmakers say China’s intervention is becoming harder to track because dollar purchases are no longer showing up clearly on the balance sheet of the People’s Bank of China. They say the activity is instead routed through state-owned commercial banks, policy banks and the country’s sovereign wealth fund, creating a system designed to avoid detection.

The senators argue that China is the only major U.S. trading partner that does not publicly disclose its foreign exchange interventions. They urge the administration to address the issue directly in the next Foreign Exchange Report, including possible consideration of a formal finding of manipulation.

Trade imbalance concerns and G7 coordination

The lawmakers link their request to a wider trade imbalance that they say is distorting global markets and weighing on U.S. industry. In their letter, they say China’s trade surplus reaches $1.2 trillion in 2025, a record high that represents nearly 70 percent of all global goods trade surpluses.

They argue that, under normal market conditions, a surplus of that scale would push China’s currency higher, but that this appreciation is not occurring because of deliberate policy intervention. A deliberately undervalued currency, they say, acts as a hidden subsidy for imports while making U.S. exports more expensive, adding pressure on American families and workers.

The senators also say the period after the G7 summit presents an opportunity for a coordinated response with allies. They add that continued engagement with G7 partners could help build unified pressure on China to allow market-driven currency appreciation and provide fuller transparency on its exchange-rate practices.

Our earlier coverage of the Senate Foreign Relations Committee’s nomination hearing outlined how lawmakers framed U.S. foreign-policy priorities around security, trade, and alliance management amid challenges from China. The discussion emphasized strengthening economic and security partnerships with European allies and boosting regional cooperation in the Western Hemisphere as part of a broader strategy to counter Beijing’s influence.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.