Two outspoken Michigan critics of China's currency policies offered guarded praise for the economic giant's signal over the weekend that it would allow its currency to slowly appreciate.

"I welcome China's decision to allow flexibility in the renminbi exchange rate," said Ways and Means Committee Chairman Sander Levin, D-Royal Oak. "This is a positive first step, but it remains to be seen whether this move will be more symbolic than significant. The significance of this policy will depend on how much the government of China allows the renminbi to appreciate over time.

"We have seen actions like this before and it is clear that China did not allow enough appreciation the last time it adopted a policy like this one, from 2005-2008. If China takes that same approach again, the United States will still need to take action."

Levin has held two hearings on China's currency and trade policies as part of the growing pressure in Congress to force China to make course corrections. He and other critics charge that China keeps the value of its currency low to make its exports more attractive.

The New York Times reports that the renminbi rose today to a near two-year high -- the largest one-day jump in five years.

"Monday's gain showed a striking hands-off attitude on the part of Chinese authorities who manage the exchange rate. But analysts will closely watch Beijing's announcement Tuesday morning of its daily reference rate to get a better sense of how swiftly China will allow financial markets to determine the renminbi's level," The Times reports.

"The weekend's statement and Monday's gains in the currency were widely interpreted as a precursor to a gradual and modest appreciation of the renminbi, which has been informally pegged against the dollar since the middle of 2008."

Rep. Mark Schauer, D-Battle Creek, jumped on the development.

Schauer, who faces a tough re-election battle, has blamed China's policies as one of the reasons Michigan has lost jobs.

Schauer is pushing legislation to only allow the U.S. government to buy as much Chinese-made products as the Chinese government buys U.S.-made products. The freshman told Levin's committee last week that he was outraged when he learned the U.S. Census was buying Chinese-made hats and key chains while China was not agreeing to open its government procurement to U.S.-made goods.

"While this is certainly welcome news, actions always speak louder than words. It's been nine years since China said it would sign the Government Procurement Agreement (GPA) -- which would allow American businesses to contract with the Chinese government -- and it still hasn't happened yet.

"Over the past nine years, we've lost 2.4 million American jobs due to unfair trade with China, and yet our own government continues to waste U.S. taxpayer dollars on goods that create jobs in China," he said. "We are effectively subsidizing China's economic boom at the expense of American workers, when we should be focused 100 percent on creating jobs here.

"I look forward to seeing additional details and concrete actions from the Chinese government over the coming days to free up its currency, but I would also urge them to immediately sign the GPA and let American workers and businesses compete on a level playing field."

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