Snow wants China to adopt more flexible currency
(AP)
Updated: 2005-11-08 22:39

U.S. Treasury Secretary John Snow on Tuesday reiterated the U.S. view that China should open up to more trade and move to a more flexible currency regime.

A currency trader counts yuan banknotes in Beijing. China's central bank reiterated it will gradually push forward reform of its managed float currency regime while keeping its exchange rate at a 'reasonable and balanced level'. [AFP]

Snow told reporters after two-day meetings with Indian business leaders and government officials that it was in the interest of the United States for the Indian and Chinese economies to continue to grow.

He said further opening both economies would sustain future growth.

"Our main issues with China are intellectual property rights, counterfeiting, making sure WTO rules are enforced and moving to a more flexible currency regime," said Snow, repeating the U.S. view that China should fulfill promises to liberalize trade made to the World Trade Organization.

The Chinese government in July re-valued its tightly controlled currency, the yuan. But Washington has said Beijing needs to make quicker progress to allow the yuan's value to be set by the market.

During a visit to China last month, Snow had urged China to adopt sweeping financial and market-opening reforms to encourage foreign investment and consumer spending.

In Bombay, he said India and China had the support of the United States since both countries were moving forward with a continuing commitment to opening up their markets.

"Both economies are growing at a good clip. Each has embraced market forces on a large scale," Snow said.

China's economy grew at by a blistering 9.5 percent last year, while India's economy is growing 7 percent annually _ making them two of the world's fastest-growing economies.