The US government has just stopped short of calling China a currency manipulator and only said that the Chinese national currency remains significantly undervalued compared to the US dollar and other currencies.

The bi-annual Treasury report includes details of the nations that the US government accuses of manipulating currencies in order to gain unfair advantages against other countries. The report said that the Chinese authorities have allowed its currency to rise 10 per cent against the dollar since June 2010 and larger when inflation is considered.

The report also noted that the currency still remains undervalued and it has to be allowed to appreciate further. American manufacturers have claimed that China is manipulating its currency to gain trade advantages against them in the global markets. A low valued Chinese currency makes Chinese products cheaper for American consumers and U. S. goods more expensive in theChinese markets.

The US firms have also expressed concerns over the low Japanese currency in recent times due to the aggressive economic policies of the Japanese governments. The report said that the US administration will monitor Japan's actions in the currency valuations after an effort by the Japanese central bank to bolster the country's economy.