Geithner 'confident' China will ease peg

“We have a strong obligation to make sure we're aggressively pursuing our interests as a country, our economic interests,” Geithner said in response to questions from the panel. He said it would probably not “take that much time” for China to adjust its policy, although he declined to provide a timeline.

The Obama administration has resisted calls for a tougher stance on China's exchange rate from some members of Congress whose districts are losing manufacturing jobs. Senator Charles Schumer, a Democrat from New York who has offered legislation in the past to slap duties on Chinese imports, said at the hearing Thursday that he's “not happy” about Beijing's lack of action and he called its policies “mercantilist.”

“Beijing is listening politely and going its own way,” said Don Straszheim, head of China research at New York-based ISI Group.

Senator Sam Brownback, a Republican of Kansas, opened the hearing by urging Geithner to “get the stick out” and “do something” to get China to move faster.

Geithner said China has committed to moving to a more flexible exchange rate, along with broader economic changes.

“They understand they need to do it,” Geithner said in response to questions from lawmakers. “I think they want to do it, and I'm actually quite confident that they will do it.”

In the meantime, the currency peg is making it “harder” for other Asian nations to let their currencies float, particularly as economic conditions improve, Geithner said.

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