China is not intentionally manipulating its currency to gain an unfair trade advantage, U.S. Treasury Department said Wednesday.

"China did not meet the technical requirements for designation" as a currency manipulator, the department said in a semiannual currency report.

The report said that U.S. officials were "unable to determine" if the exchange rate policies were "carried out for the purpose of preventing effective balance of payments adjustment or gaining unfair competitive advantage in international trade."

"China has achieved exceptionally rapid growth," said the report to Congress on exchange-rate policies of key trade partners.

However, "its growth has become severely unbalanced -- dependent on exports and investment and characterized by very high savings, weak consumption, and an inflexible exchange rate," the report said.

The report said that China should not hesitate any longer to take far more vigorous action to rebalance its economy, promote immediate yuan movement to tackle "the currency's undervaluation," and achieve far greater flexibility in the exchange rate regime.

Source: Xinhua