Lew says China's currency still undervalued
Published on Jul 1, 2014 10:38 PM
WASHINGTON (AFP) - US Treasury Secretary Jacob Lew on Tuesday said China's yuan currency remains undervalued, a longstanding sore point that will be raised at next week's high-level bilateral negotiations in Beijing.
Mr Lew said that the yuan, or renminbi, has appreciated 14 per cent since 2010, when China began taking small steps to allow its currency to trade more freely.
"It still needs to appreciate more. It's undervalued," said Mr Lew, who will lead the US economic team at the US-China Strategic and Economic Dialogue (SED) in Beijing next Monday and Tuesday.
The value of the yuan is a highly sensitive political issue in relations between the world's two largest economies. The United States, while not branding China a currency manipulator, which could entail sanctions, has long insisted the weak yuan gives China an unfair trade advantage.
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