BEIJING -- Visiting US Secretary of Treasury Henry Paulson said that China should further its currency reform when it establishes "a competitive and open financial market system".

Paulson made the remarks at a press conference Wednesday evening in Beijing.

"I'm not get concerned with what technique they use to get flexibility," Paulson said, noting that China could further its currency reform to a definite point when "a competitive and open financial market system" has been established.

China switched its yuan to US dollar pegging system to a basket of foreign currencies last July, with the trading price between the dollar and the yuan at the inter-bank foreign exchange market floating within a 0.3 percent band around the official central parity.