Reporting on the October 2009 US trade deficit and the bilateral deficit with China, the Associated Press’ Martin Crutsinger and Christopher S. Rugaber conclude:

American manufacturers contend that China is manipulating the value of its currency, keeping it undervalued by as much as 40 percent in relation to the dollar. That gives Chinese manufacturers a competitive advantage and makes U.S. goods more expensive in China.

While Crutsinger and Rugaber are correct that American manufacturers still allege that China’s currency is undervalued by 40%, the journalists fail to mention that this statistic is from 2003, and that China’s currency – the Renmibi (RMB) – has appreciated around 20% against the dollar since that time (starting in 2005). Today, reputable economists speculate that the RMB remains undervalued against the dollar, but only by about 10-15%. Crutsinger and Rugaber should not have simply accepted the US manufacturers’ dated allegations.