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China-US frictions remain on exchange rate

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Chinese Vice Premier, Wang Qishan, and State Councilor, Dai Bingguo, have left Beijing for the third round of the China-US Economic and Strategic Dialogue to be held in Washington on Monday and Tuesday.

US Treasury Secretary Timothy Geithner will be joined by Secretary of State Hillary Clinton as the heads of the US delegation. As our reporter finds out, the two sides have a heavy agenda at the coming talks.

Frictions remain, ahead of the talks in Washington, Chinese Vice Finance Minister Zhu Guangyao said simply "we have different views on the long-lasting issue: " China's currency exchange rate.

Zhu Guangyao said, "China's view remains that the goal of our reform is to reform the renmenbi exchange rate formation mechanism. But the US side puts more emphasis on the range of the renminbi's appreciation. On this specific issue, I frankly acknowledge that China and the United States have different views. Therefore, we need to have discussion."

In addition to currency exchange rates, the dialogue will also discuss accessibility in both markets. It has long been a request of the US, and this year China also will push Washington to give Chinese enterprises greater access to invest in the US.

The dialogue, which began in 2006 as a purely economic forum with treasury and central bank leaders, has expanded during the Obama administration. Strategic and security issues will also be discussed between the two sides.

 

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