The U.S. Senate Committee on Banking, Housing and Urban Affairs published a letter from Ranking Member Elizabeth Warren and Sen. Rick Scott urging Treasury Secretary Scott Bessent to address China’s currency practices in the next Foreign Exchange Report, including considering a formal finding of manipulation. The lawmakers also called on the administration to work with Group of Seven allies on a coordinated response aimed at pushing China toward market-driven currency appreciation and greater transparency in its exchange-rate practices. In the letter, they argue China has shifted foreign exchange intervention away from the People’s Bank of China’s balance sheet and into state-owned commercial banks, policy banks and its sovereign wealth fund, making the activity harder to detect. They point to China’s USD 1.2 trillion trade surplus in 2025, which they say accounted for nearly 70 percent of global goods trade surpluses, and contend that the lack of corresponding currency appreciation indicates deliberate intervention that acts as a hidden subsidy for Chinese exports while making U.S. exports more expensive. The letter also says the aftermath of the G7 summit creates an opening for coordinated engagement with allies on trade imbalances with China.
U.S. Senate Committee on Banking, Housing and Urban Affairs2026-06-18
U.S. Senate Committee on Banking, Housing and Urban Affairs lawmakers urge Treasury to consider formal finding of China currency manipulation
Lawmakers on the U.S. Senate Committee on Banking, Housing and Urban Affairs urged Treasury Secretary Scott Bessent to address China’s currency practices in the next Foreign Exchange Report and to consider a formal manipulation finding. Their letter argues China is masking intervention through state-owned financial institutions and says its USD 1.2 trillion 2025 trade surplus supports a coordinated response with G7 allies.