UPDATE 1-U.S.’ Geithner, China’s Wang to meet on Sunday

* Geithner, Wang to meet in Qingdao, China, on Sunday

* Meeting comes as U.S. considers yuan manipulation report

* Geithner: China “very supportive” of G20 agreements

By David Lawder

GYEONGJU, South Korea, Oct 23 (BestGrowthStock) – U.S. Treasury
Secretary Timothy Geithner on Sunday will travel to Qingdao,
China, to meet with Chinese Vice Premier Wang Qishan, a senior
Treasury official said.

Geithner and Wang, who are designated as special
representatives of their respective presidents on U.S.-China
economic issues, will discuss “important bilateral economic
matters”, the official said, without elaborating.

The stop-off in China comes at the end of Geithner’s trip to
the Group of 20 finance ministers and central bank governors
meetings here, where officials agreed to refrain from competitive
currency devaluations and reduce current account imbalances.

The United States has been pressuring China to allow its yuan
to rise more rapidly in response to market forces.

Last week, Geithner delayed a semi-annual report to U.S.
lawmakers on whether China manipulates its yuan for a trade
advantage, choosing instead to press the issue at multilateral
meetings including the Gyeongju finance leaders meeting and a G20
leaders summit next month in Seoul.

Geithner said China in Gyeongju was “very supportive” of
finding a multilateral solution to reducing global trade
imbalances in the G20 meetings.

He reiterated that he wants to see China to accelerate its
move towards a market-determined exchange rate.

“China is well into a very promising and very ambitious
program of domestic reforms to strengthen domestic growth because
China recognized that it cannot afford to rely as it has in the
past on such an export-dependent model for growth,” Geithner told
a news conference. “We want to see that progress continue.”

“Of course as a part of that, it’s not ready for its exchange
rate to rise more rapidly in response to market forces,” Geithner
added of China.

The U.S. House of Representatives earlier this month passed
legislation that aims to increase pressure on China by treating
currency undervaluation as a subsidy. It will authorize the U.S.
Commerce Department to apply countervailing duties to offset any
price advantage from currencies.

Geithner made a similar stop-off in China on the way home
from a trip to India in April, which also took place when the
Treasury had delayed its currency report to allow Beijing more
time to move on the yuan.
(Reporting by David Lawder; Editing by Ed Lane and Tomasz
Janowski)

UPDATE 1-U.S.’ Geithner, China’s Wang to meet on Sunday