China offers to ease exchange rate curbs as APEC pushes for world trade talks

08 September 2006

Mumbai: China has agreed to bring in more flexibility in its exchange rate policy. "We will further deregulate the control of foreign exchange in China," Chinese finance minister Jin Renqing said on the sidelines of a meeting of finance ministers of the Asia-Pacific Economic Cooperation (APEC).

"We believe we can lay firm foundations and create favourable conditions for further exchange rate regime reform in China," he added.

The United States has been blaming an undervalued yuan for its massive trade deficit with China. US business and politicians are pressing China to raise the value of its currency to make its exports less competitive in the US.

US senators are also planning to push legislation to impose import tariffs of 27.5 per cent on Chinese products unless that country raises the value of its currency by the month-end.

There were no formal bilateral meetings between the US and Chinese delegations during the two-day meeting.

Finance ministers the 21-nation APEC, who ended a meeting in Hanoi, issued a statement calling for "greater exchange rate flexibility for some economies as appropriate in emerging Asia". The statement, however, made no specific reference to China.