Factbox: Comments about the yuan at U.S.-China talks

BEIJING (BestGrowthStock) – The following is a selection of quotes from Chinese and American officials on what to do with the yuan, also known as the renminbi.

China has pegged the yuan to the dollar since the middle of 2008 to help the economy through the global downturn but U.S. lawmakers have complained the policy gives Chinese exporters an unfair trade advantage.

All comments were made at their two-day Strategic and Economic Dialogue in Beijing, which ends on Tuesday.

CHINESE PRESIDENT HU JINTAO:

“China will continue to steadily advance reform of the renminbi exchange rate formation mechanism following the principles of being independent, controllable and gradual.”

U.S. TREASURY SECRETARY TIMOTHY GEITHNER:

“We welcome the fact that China’s leaders have recognized that reform of the exchange rate is an important part of their broader reform agenda.

“Allowing the exchange rate to reflect market forces is important not just to give China the flexibility to sustain economic growth with low inflation but also to reinforce incentives for China’s private sector to shift resources to more productive, higher value-added activities.”

PEOPLE’S BANK OF CHINA GOVERNOR ZHOU XIAOCHUAN:

Asked by a journalist about an International Monetary Fund report, which a group of U.S. senators says shows that Beijing manipulates the value if its currency, Zhou said:

“We don’t know of such a report by the International Monetary Fund…there’s no such report.”

In general comments about monetary policy:

“China is a big economy, and generally domestic factors are most important in adjusting domestic monetary policy under most circumstances.”

U.S. TRADE REPRESENTATIVE RON KIRK:

Any progress from China in intellectual property protection and market access barriers could be more important than yuan reforms: “All these could be as valuable, if not more valuable frankly, than whatever we accomplish on the exchange rate.”

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(Compiled by Zhou Xin; Editing by Neil Fullick)

Factbox: Comments about the yuan at U.S.-China talks