China economic growth worries US

China 's President Hu Jin Tao is to visit US President Barack Obama next week

Source: Press TV
http://www.presstv.ir/detail/159765.html


The United States has expressed concern over China's economic policies and called on the Chinese government to distance itself from an export-based economic growth.

The US wants a “real demonstrative commitment” from China to accelerate the rise of its currency, yuan, and to shift the focus of its economy from the outside to the inside, and thus increase domestic demand and rebalance the economy, Reuters quoted a US official as saying on Tuesday.

"It's both the pace in which they do it and the conviction with which they demonstrate they're going to do it," the senior Obama administration official went on to say.

Currency strategists maintain that China is gradually giving up the firm grip and the control of trading in order to internationalize yuan and this strategy is essential for easing the capital control and the reform of foreign exchange.

China, however, has blamed the United States for the trade gap and the imbalances and has called on Washington to take action to resolve its fiscal house problem to prevent the world economy from further instability.

The remarks come just days ahead of Chinese President Hu Jin Tao's official visit to the United States during which economic as well as military issues will be the highlight of the negotiations.