The US Treasury Secretary John Snow said Wednesday the US continues its pressuring policy towards China’s policy of buzzing off its promises to unpeg the renminbi that has negative impact on the US economy.

The Bush administration keeps to its strategy to force China to be more reasonable with its yuan that damages the US economy with the deficit that hits record highs in the situation when cheap Chinese exports rush to the US and EU.

"We are escalating the rhetoric and time is running out. I fully expect in the next few months we are going to see that," said John Snow.

The yuan is now pegged by China at 8.28 to the dollar. The pegging evoked opposition from the US manufacturers and lawmakers that claim China receives unfair price advantage in its imports to the US. The US saw hundreds of closed factories and thousands of lost jobs for this reason, Snow said. Manipulation of the market by China is excluded.

The European Union worries that some extra moves from the US will lead to the flood of cheap imports to the countries that share the euro.

The Treasury reported Tuesday that China will possibly be named as a «country that deliberately manipulates its currency manipulation» by the end of 2005 unless it unpegs the renminbi.

Mr. Snow also added that he hopes China will understand the situation and take steps towards improving its relations with the US.