WASHINGTON – Treasury Secretary-designate Timothy Geithner says President Barack Obama believes China is “manipulating” its currency, a declaration that American manufacturers have long sought in their efforts to combat America’s soaring trade deficit with China.

However, Geithner also suggested that now might not be the right time to brand China as a currency manipulator under U.S. trade law, a designation that would trigger negotiations between the two countries and could result in U.S. economic sanctions against China.

“President Obama — backed by the conclusions of a broad range of economists — believes that China is manipulating its currency,” Geithner wrote in answer to questions submitted to him by members of the Senate Finance Committee.

“President Obama has pledged as president to use aggressively all the diplomatic avenues open to him to seek change in China’s currency,” Geithner said.

He noted that while in the Senate, Obama sponsored legislation along with other senators that would overhaul the process for determining what countries are manipulating their currency to gain trade advantages in competition with the United States. That legislation would have authorized a new enforcement process “so countries like China cannot continue to get a free pass for undermining fair trade principles,” Geithner said.