US asks China for more action on yuan

US President Barack Obama has called on Chinese prime minister to hasten addressing a dispute over the value of yuan, saying China’s inaction affects both global and US economies.

“Our common interests far outweigh our differences,” Obama said Thursday after a two-hour meeting with Wen Jiabao on the sidelines of the UN General Assembly, adding that both countries must work to achieve balance and persistent economic growth, Bloomberg reported.

According to Obama’s special assistant and senior director for Asian affairs, Jeff Bader, the talks between the two officials focused on economic issues.

During the talks, Obama noted that “there had not been much movement” since China said in June that it would implement a more liberal currency policy, Bader said.

The US president told Wen that the Chinese inaction “had consequences for the global economy and the US economy,” he noted.

Obama said the US “looked for a more rapid and significant revaluation in coming months,” according to Bader.

The US claims that the yuan is artificially undervalued, saying that such a low rating keeps exports relatively cheap and gives Chinese exporters an unfair advantage over their rivals.

Meanwhile, the spokesman for China’s Ministry of Commerce, Yao Jian, said in June that US attempts to punish Beijing unless it allows the yuan to climb would not be supported by the World Trade Organization rules.

On Wednesday night, Wen addressed the business community in New York, saying that China will continue reforming and opening its markets under a policy it started in 1978.

However, demands by US lawmakers that China revalue its currency by more than 20 percent would bankrupt Chinese companies and lead to “major unrest” in his country, the premier said.