The failure of China to permit its currency to move, as most other countries in the world are doing, leads to a major protectionist trade reaction here in the United States.

It's a big mistake not to label China if the U.S. law has any meaning. They are still intervening massively to keep their currency from rising. I don't see how you can not define that as manipulation.

We get the strong sense that the degree of frustration with China is accelerating very sharply and is not likely to be assuaged by a few orders that likely would have been placed anyway.

The failure to get progress on the economic issues may undermine the overall relationship and then make it harder to work together on the security concerns.

In this crucial area, China is not playing by the rules. Failure to get progress on the economic issues will undermine the whole relationship and make it harder to get cooperation on security issues.

The U.S. administration wants to put more pressure on countries that are deemed to be currency manipulators, like China.