China has said that any decision to let its currency, the yuan, appreciate will be based on its own assessment of the economy.
That was in response to US Treasury Secretary Timothy Geithner saying last week that the yuan being undervalued is an impediment to achieving a proper balance of the global economy.
China’s Foreign Ministry moved to head off any discussion of the issue at the G20 Summit in Canada later this month.
A ministry spokesman said: “The international community should increase co-operation in order to strengthen the world’s economic recovery. That should be the main agenda at the Toronto summit. Therefore we consider it inappropriate to discuss our currency’s exchange rate at the G20 summit.”
A senior Canadian official said this week that the G20 must be careful not to exert too much direct pressure on China, while still delivering the message that a stronger yuan would actually be in Beijing’s own interest.