WASHINGTON - US Commerce Department announced on Tuesday its decision not to initiate investigation on allegations that China's currency practices constitute an unfair subsidy.

The currency allegations under review were made in the context of countervailing duties (CVD) investigations of two Chinese products -- aluminum extrusions and coated paper.

"Two allegations before it that China's currency practices constitute an unfair subsidy under US countervailing duty law failed to meet the requirements for the initiation of an investigation," the Commerce Department said in a statement.

"Today's currency decision was based on a careful evaluation of the specific legal arguments and evidence put before the department, in relation to the standards for the initiation of an investigation under the CVD law," Deputy Assistant Secretary for Import Administration Ronald K. Lorentzen said.