Government and Policy

Hu: China to work for balanced growth, yuan

(Agencies)
Updated: 2010-11-02 09:55
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PARIS -- China is ready to work with other countries to achieve balanced economic growth and will seek to perfect its exchange rate system to increase the flexibility of its yuan currency, President Hu Jintao told the French daily Le Figaro in an interview published on Monday.

Hu, who will discuss global economic issues with President Nicolas Sarkozy during a Nov 4-6 state visit to France, was quoted by Le Figaro as saying it was important to promote fair, balanced trade by fighting protectionism.

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"In the future we will continue to perfect, according to the principles of autonomy, controllability and progressiveness, our floating and regulated exchange rate system to make the laws of supply and demand work better and increase the yuan's flexibility, to maintain a relative stability of our currency at a fair and balanced level," Hu was quoted as saying.

He said China's exchange rate policy was "coherent and responsible", adding: "We have always worked to advance the reform of the mechanism of the yuan exchange rate."

Asked what China expected to come out of the Seoul summit, Hu said he expected progress in four areas: reinforcing economic policy coordination; pushing for a reform of the global financial system and reinforcing market regulation; working on global imbalances and fighting protectionism.

"To correct trade imbalances, the parties concerned must transform their mode of development, restructure their economies and promote fair and balanced trade by fighting any form of protectionism," Hu said.

Separately, Les Echos daily reported in a preview of its Tuesday edition that French nuclear reactor maker Areva may sign a $3 billion contract during Hu's visit to supply 20,000 tonnes of uranium to the China Guangdong Nuclear Power Corp (CGNPC) over 10 years.