The Hill News

White House Press Secretary Robert Gibbs would not say if the White House backs legislation that cracks down on China's manipulation of its currency.

The House on Wednesday passed landmark legislation intended to pressure China to boost the value of its currency, but the Obama White House has been cool to the legislation, preferring instead to deal with the issue through direct talks with China.

"I don't know the degree to which inside of here that legislation has been evaluated," Gibbs told reporters during his daily press briefing. 

The Senate must pass the legislation before it reaches President Obama's desk, but the vote demonstrated the increasing pressure on the administration to convince China to let its cur! rency freely respond to market forces. 

Labor unions and manufacturers have been pressing for action for years. They argue China’s currency manipulation lowers the cost of China’s exports, hurting U.S. workers and businesses. The U.S. trade deficit with China stands at $145 billion.

But business groups have warned that the legislation could damage the U.S.-China trade relationship by sparking a trade war.

Gibbs acknowledged the problem exists, saying Obama has "discussed his concern as he has in the past."

"We have said for quite some time that the currency is undervalued and that reforms need to be undertaken," he said.