US, China vow economic teamwork

CHINA: China and the United States vowed Thursday at a top-level meeting in Beijing to cooperate in tackling the global economic crisis, even as they sparred over Chinese exchange rate reform.

Following a recent weakening of China's currency, the yuan, US Treasury Secretary Henry Paulson's team pressured his hosts on the contentious issue on the first day of their twice-yearly Strategic Economic Dialogue (SED).

"We certainly emphasised the importance in our view of continued currency reform, and that currency reform is important for continuing to re-balance China's economy," a senior US official said on the first of two days of talks.

"There was a fair amount of discussion on the Chinese side about the challenges they face but also a restatement of their commitment to continued currency reform," he said, briefing reporters on condition of anonymity.

Concerns are emerging abroad that China may freeze or reverse currency reform to help its struggling export sector.

Beijing, Thursday, AFP