Democratic Senator Elizabeth Warren and Republican Senator Rick Scott have jointly urged the Trump administration to take stronger action against what they described as China's deliberate currency manipulation, warning that Beijing's policies are distorting global trade and undermining American manufacturers and workers. The bipartisan appeal came in a letter dated 19 June addressed to Treasury Secretary Scott Bessent, sent in the immediate aftermath of the G7 summit in Evian, France.

What the Senators Alleged

The two lawmakers — Warren serving as ranking member of the Senate Banking Committee — argued that China is suppressing the value of its currency, the renminbi, to make its exports artificially cheap and US-made goods artificially expensive. 'China appears to be deliberately suppressing the value of its currency to make its exports artificially cheap and American-made goods artificially expensive, unfairly undermining the competitiveness of US manufacturers and workers,' the senators wrote in the letter.

How China's Methods Have Evolved

The senators argued that Beijing has shifted away from direct central bank intervention — which was previously traceable through the People's Bank of China (PBoC)'s balance sheet — toward a 'less visible approach' that routes dollar purchases through a network of state-owned commercial banks, policy banks, and its sovereign wealth fund. They described this as 'a system deliberately designed to evade detection,' noting that China is 'the only major US trading partner that does not publicly disclose its foreign exchange interventions.'

The Trade Surplus Evidence

China's trade surplus reached a record $1.2 trillion in 2025, according to the letter — representing nearly 70 percent of all global goods trade surpluses. The senators argued that under normal market conditions, a surplus of that scale would drive currency appreciation, yet no such rise has occurred. 'The reason is likely due to a deliberate policy of manipulation,' they wrote. They further characterised an undervalued currency as a 'hidden subsidy' that simultaneously lowers the cost of Chinese imports into the US and raises the price of American exports abroad.

What the Senators Are Asking For

The letter called on the Treasury Department to address China's currency practices directly in its next Foreign Exchange Report, including formal consideration of a currency manipulator designation. The senators also urged the administration to coordinate with G7 allies — who, according to the lawmakers, share concerns about Chinese trade imbalances — to press Beijing toward greater transparency and market-driven currency appreciation. 'Our G7 allies share concerns about China's currency, and the aftermath of the summit presents an opportunity to coordinate a unified response,' they wrote.

Broader Context

The bipartisan push comes as the Trump administration has been seeking allied support to address trade imbalances with China — a theme that featured prominently at the G7 summit. The US Treasury publishes a semi-annual Foreign Exchange Report that assesses whether trading partners are manipulating their currencies; a formal designation carries significant diplomatic and trade consequences. The last time the US formally labelled China a currency manipulator was in August 2019, during the first Trump administration, a designation that was later reversed. Whether the current administration acts on the senators' request will be closely watched by markets and trading partners alike.