The U.S. government has decided not to label China as a currency manipulator despite its belief that the appreciation of the Chinese currency is insufficient.

The U.S. Treasury Department said in a recent report to Congress that China is not manipulating its currency, although it has turned a deaf ear to the market’s call for the appreciation of the yuan over the past ten years.

The department’s decision runs counter to the political sector’s demand that China be designated as a country manipulating its currency to gain trade advantages.

In early October, the U.S. Senate passed a bill to impose retaliatory tariffs on Chinese exports, accusing Beijing of artificially holding down the value of the yuan.