|
China, US to cooperate on yuan: Bush
(AP)
Updated: 2005-11-21 16:06
Washington and Beijing will cooperate toward making the yuan's exchange rate more responsive to market forces of supply and demand, visiting U.S. President George W. Bush said on Sunday.
Chinese cash. China will 'unswervingly' press ahead with currency reform, Chinese President Hu Jintao said after a meeting with his US counterpart George W. Bush. [AFP] |
China revalued the yuan by 2.1 percent in July and cut it loose from the dollar so it could float within tightly managed bands. But since then, the yuan rose only a further 0.33 percent against the dollar.
Bush said he applauded the July reform.
"I also reminded the leaders that we've seen some movement but not much in the currency valuation," he told reporters after his meetings with Chinese officials. "And I explained to them as clearly as I could that the value of the Chinese currency is very important for manufacturers and workers in the United States."
Earlier, at a joint news conference with Chinese President Hu Jintao, Bush said: "We'll continue to work with China to help implement its July commitment to a flexible, market-based currency."
Without giving details, Hu said China would press ahead with the reform of the yuan and "join hands" with the United States to gradually restore balance in trade between the two countries.
"The frictions and problems that may arise in this rapid development of two-way trade may be properly addressed through consultations," Hu said.
China and the United States removed one of the thorns in the side of two-way trade ties this month when they agreed on curbs on the growth of Chinese textile exports until the end of 2008.
But China's export prowess is rankling with many U.S. law-makers. Senators Charles Schumer, a New York Democrat, and Lindsey Graham, a South Carolina Republican, propose a 27.5 percent tariff on imports from China -- the degree by which they say the yuan is undervalued -- unless China acts soon.
The two delayed a vote on their bill last week, citing the timing of Bush's visit, but said it would take place by March 31.
According to U.S. figures, the United States had a trade deficit of $162 billion with China in 2005, a gap that is on course to grow to $200 billion this year.
"They need to move," said Faryar Shirzad, an economic affairs specialist with the White House National Security Council. "We understand the move to full flexibility will have to be gradual and implemented over time. But it's really time for them to begin to move much further than they have already," he told reporters on Saturday aboard Air Force One.
|
