Cameron asks China to correct its trade imbalance

UK prime minister David Cameron has pitched in on the controversy over "currency wars" to deliver a warning to China that it act to correct its trade imbalance.

In a speech at Peking University, Cameron said China's export success posed a potential threat to other economies.

He added that China's huge trade surplus could be partly attributable to the weak yuan which helps the country's exports.

According to the latest figures, China's trade surplus with the UK was up $27 billion in October, despite a cooling off in the country's rapid economic growth.

Beijing has come in for a lot of flak recently for keeping the yuan artificially low, which boosts exports yielding massive amounts in foreign reserves for the country.

Cameron who is leading a trade mission to the country said he wanted "to make the positive case for the world to see China's rise as an opportunity, not a threat".