June 14 - China is not intentionally¹ manipulating its currency to gain an unfair trade advantage, U.S. Treasury² Department said Wednesday.

"China did not meet the technical requirements for designation” as a currency manipulator, the department said in a semiannual currency report.

The report said that U.S. officials were "unable to determine" if the exchange rate policies were "carried out for the purpose of preventing effective balance of payments adjustment or gaining unfair competitive advantage in international trade."

"China has achieved exceptionally rapid growth," said the report to Congress on exchange-rate policies of key trade partners.

However, "its growth has become severely³ unbalanced -- dependent on exports and investment and characterized by very high savings⁴, weak consumption, and an inflexible⁵ exchange rate," the report said.

The report said that China should not hesitate any longer to take far more vigorous action to rebalance its economy, promote immediate⁶ yuan movement to tackle "the currency's undervaluation," and achieve far greater flexibility⁷ in the exchange rate regime.