Thursday, December 13, 2007

US vows to keep up trade pressure on China

The United States vowed on Thursday to maintain pressure on China over alleged unfair trade practices, as the world powers wrapped up two days of tense economic talks.

Treasury Secretary Henry Paulson, who urged China at the start of their Strategic Economic Dialogue on Wednesday to let its yuan currency rise, said the United States would continue to press Beijing on the issue.

"China isn't ready to have a market-determined currency yet but they need to move in that direction and they're going to continue to hear about it until they get a market-determined currency," he told reporters at the close of the talks outside Beijing.

Earlier on Thursday, US Trade Representative Susan Schwab said Washington would continue to haul China before the World Trade Organisation in commercial disputes, despite Chinese warnings that such moves threatened economic ties.

"If we are unable to (resolve disputes through negotiations), then we will absolutely protect our rights under our trade agreements," Schwab said, referring to the WTO option.

The leader of the Chinese delegation, Vice Premier Wu Yi, has cautioned the United States against "politicising" trade issues and took exception to recent US cases against China filed with the WTO.

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