In its semiannual report to Congress, released on Friday, the Treasury department said no major trading partner met all three criteria, which would earn them the label of a currency manipulator, for the current reporting period.
US President Donald Trump had repeatedly accused China of indulging in currency manipulation to boost exports.
The report said Treasury would review the currency and other trade practices of the six nations named to the monitoring list and meet with finance officials from those nations to ensure progress in shrinking their trade imbalances with the United States.
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He said progress on trade was needed to narrow the deficit between the two countries but that should be achieved through increasing U.S. exports to China, not cutting United States imports of Chinese goods.
USA 100 dollar banknotes and Chinese 100 yuan banknotes are seen in this picture illustration in Beijing, China, January 21, 2016.
Economists agree that China doesn't now merit the label of currency manipulator, and has not engaged in the practice for several years.
Many economists have argued that the Chinese currency, RMB, has been at equilibrium level in recent years.
While the report stops short of labeling the country a currency manipulator, the Treasury Department report criticizes China for past currency manipulation and warns that the United States "will be scrutinizing China's trade and currency practices very closely".
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He had promised to label the country a currency manipulator on "Day One" of his presidency.
Ruan Zongze, executive vice-president of the China Institute of International Studies, said Trump's remarks on the currency issue are positive.
Still, despite that reversal, the report said a decade of holding down the renminbi had imposed "significant and long-lasting hardship on American workers and companies" and left China with the largest trade surplus of any country against the United States - $347 billion previous year.
Trump heaped criticism on China during his campaign saying they deliberately undervalued their currency, the yuan, to gain an advantage in global trade and create a wide trade deficit with the United States.
Beijing has not intervened recently in markets to weaken the value of its currency - the third criteria - and in fact has tried to keep the renminbi from falling further amid the country's relatively sluggish growth rate.
Commerce Secretary Wilbur Ross has said that the issue of "currency misalignment" - which could also include unintentional devaluations - will be addressed in a study of trade abuses by nations that run large surpluses with the US, which is due to be ready in June.
After a friendly meeting in Florida with Chinese President Xi Jinping last week, Trump changed his mind and told the The Wall Street Journal in an April 12 interview that "they're not currency manipulators".
Trump told reporters he's pushing Xi to pressure North Korea to abandon development of nuclear weapons and missiles capable of striking the US, a program that has also alarmed American allies in Japan and South Korea.
The comments highlight the president's protectionist stance, however they may contradict his tax reform policies and plans for increased spending on major infrastructure projects.