China trade complaint rejected

WASHINGTON — A business and labor coalition, seeking to apply political pressure before the presidential election, yesterday asked the Bush administration to bring a trade case accusing China of manipulating its currency to gain unfair trade advantages.

The administration quickly said no, declaring it would not ‘‘retreat into economic isolationism.’’

Administration officials said President Bush believes efforts to use diplomatic channels to get China to stop linking its currency, the yuan, to the dollar are beginning to show results that would be jeopardized if the United States complained.

The Democratic presidential challenger, Senator John Kerry, said Bush’s rejection of the petition was another example of failure to enforce trade laws to protect American workers: ‘‘George Bush has made it clear that he wants to continue taking America in the wrong direction by refusing to enforce our trade agreements and continuing to allow China to manipulate its currency.’’

The petition was filed by the China Currency Coalition, by the AFL-CIO.

A broader group that includes the National Association of Manufacturers refused to join in.