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Bush: US supports 'one-China' policy
(Reuters/chinadaily.com.cn)
Updated: 2005-11-16 11:37


Trade and currency 

Bush urged China on Wednesday to act to bring more flexibility to its currency system and to rein in the yawning US-China trade imbalance.

He said that China's access to American markets had played an important role in its development as an economic power and he noted that the United States had supported China's entry into the World Trade Organization.

In return, he said, "China needs to provide a level playing field for American businesses seeking access to China's market."

Amid growing complaints by US politicians, manufacturers and workers about the trade deficit with China and the Chinese currency, Bush faces pressure to take a tough line such issues.

Bush said China had made a "good beginning" on trade with the July revaluation of its currency and with statements made by Chinese President Hu Jintao promising to address the bilateral trade gap and to crack down on the counterfeiting of US music, software and other goods.

But he added: "China needs to take action to ensure that these goals are implemented."

In July, after some two years of intense speculation in financial markets of a currency adjustment, China revalued the yuan by 2.1 percent, scrapped an 11-year-old peg to the dollar and said it would allow its currency to appreciate as much as 0.3 percent per day against the dollar.

But since then the yuan has moved little, rising a total of about 0.3 percent against the US dollar over three months.

Chinese officials have repeatedly said they will allow greater yuan flexibility but only gradually.

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