Beijing -- Visiting U.S. Treasury Secretary Henry Paulson says it is in China's interest as well to let its under-valued currency appreciate faster, says a report.
Paulson, who is Beijing for the U.S.-China Strategic Economic Dialogue, said he told his hosts they "would have better financial security and stability, if they would pick up the pace of appreciation (of the Yuan) in the short term," The Wall Street Journal reported. He also asked China to let the market set the currency's value in the medium term.
Paulson noted China's progress in allowing more foreign participation in local brokerage services and to permit joint ventures in the field.
The currency issue has become a major controversy because by artificially keeping it undervalued, China has seen its exports and trade surplus soar to record levels. China is also facing mounting international pressure to improve the safety of its products after recent findings and disclosures.
These issues have led some U.S. lawmakers to consider imposing trade sanction against China.
Paulson said that although China has allowed the value of the Yuan to rise faster in recent months, it isn't fast enough in relation to that country's double-digit economic growth.
Copyright 2007 by United Press International.