US urges China to allow yuan rise, speed reforms

CHINA: US Treasury Secretary Timothy Geithner Thursday urged China to allow its currency to strengthen further and push forward economic reforms, which he said were crucial to the global recovery.

But his comments at the start of two-day talks between the world's two biggest economies were overshadowed by a human rights row that has threatened already strained relations.

US officials have long accused Beijing of keeping the value of the yuan artificially low to boost exports, leading to a massive Chinese trade surplus with the United States.

Geithner said China's currency had appreciated by around 13 percent against the US dollar over the past two years, but urged more gains.

"We consider particularly important the emphasis on reforms to... continue the appreciation of the renminbi (yuan) against the dollar and the other major currencies," Geithner said.

"A stronger, more market-determined (yuan) will help reinforce China's reform objectives," he added. AFP