Michaud slams administration for decision on China's currency

"In an economic downturn of this magnitude, it is crucial that the federal government do everything it can to protect our small businesses from unfair trade practices," Michaud said in prepared remarks. "Because the White House has refused to take action to level the playing field with China, it is absolutely imperative that Congress do so as soon as it returns."

The congressman added that "China undeniably undervalues the yuan to its economic advantage."

The Commerce Department earlier this week ruled that China's currency policy is not a direct subsidy for its exporters and that it will not investigate the matter.

In a statement from the department, it announced that "China's currency practices" do not "constitute an unfair subsidy under U.S. countervailing duty law" and that allegations to the contrary "failed to meet the requirements for the initiation of an investigation." 

The ruling signals that the currency issue will likely be addressed through diplomatic channels, rather than tweaking U.S. trade rules. 

The House Ways and Means Committee is slated to host a hearing on China's currency policy when lawmakers return later this month.