News Column

U.S. calls on China to make exchange rate more market-oriented

May 12, 2014

The U.S. treasury secretary on Tuesday asked China to let markets play a bigger role in determining the value of the yuan and be more open to foreign investment.

Treasury Secretary Jacob Lew told Chinese Vice Premier Wang Yang in Beijing that it is "important that China demonstrates a renewed commitment to move toward a more market determined exchange rate, which would help provide for a more balanced domestic growth and global trade."

Lew, who is scheduled to meet with Chinese Premier Li Keqiang later in the day, said China also needs to improve its enforcement of intellectual property rights and against trade secret theft.

"As China continues to grow, it's important that it be in a fair and balanced way consistent with international trade rules," Lew said.

Last November, China'sCommunist Party endorsed a road map to advance economic reforms for the next decade in an attempt to allow markets play a "decisive" role in allocating resources.

Still, foreign companies view China as rife with regulations and feel they are not competing on an equal footing in the world's second-largest economy.

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Source: Japan Economic Newswire

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