China rejects US demand on yuan
Beijing, Oct. 24: The US treasury secretary, Mr Timothy Geithner, on Sunday discussed economic ties with the Chinese vice-premier, Mr Wang Qishan, in a brief meeting in eastern China.
Mr Geithner and Mr Wang, who are designated as special representatives of their respective presidents on US-China economic issues, met at Qingdao airport, a stop-off for Geithner after the Group of 20 meetings in South Korea.
The United States has been pressurising China to allow its yuan to rise more rapidly in response to market forces.
Mr Geithner said China in Gyeongju was “very supportive” of finding a multilateral solution to reducing global trade imbalances in the G20 meeting.
“China is well into a very promising and very ambitious programme of domestic reforms to strengthen domestic growth because China recognised that it cannot afford to rely as it has in the past on such an export-dependent model for growth,” Mr Geithner told at a news conference.
“We want to see that progress continue,” he said. “Of course as a part of that, it’s not ready for its exchange rate to rise more rapidly in response to market forces.”
The US House of Representatives earlier this month passed legislation that aims to increase pressure on China by treating currency undervaluation as a subsidy. It will authorise the US commerce department to apply countervailing duties to offset any price advantage from currencies.
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