* China Fin Min defends Beijing's currency intervention
* Says hard to end intervention when China's economy is
(Adds details, quotes)
BEIJING, July 9 China's finance minister on
Wednesday defended the country's currency interventions, saying
it was difficult to take a hands-off approach when it came to
the yuan, given an unsteady economy and abnormal capital
Speaking on the first day of annual high-level talks between
China and the United States, Lou Jiwei said Beijing also faced
challenges in managing hot money inflows resulting from the
winding down of super-loose U.S. monetary policy.
"The U.S. side has constantly raised the issue about whether
intervention is no longer needed in our foreign exchange
policy," Lou told reporters at a briefing.
"But we say it's difficult when the economy has yet to fully
recover, and cross-border capital flows are not normal."
The value of the yuan has been a thorny issue in bilateral
ties between the world's two biggest economies, with U.S.
leaders saying that China suppresses its currency to boost its
export sales. China has always denied such accusations.
Turning to the health of China's economy, Lou said the days
when China contributed to nearly half of global economic growth
with large pump-priming projects plans are over.
While China aims to grow its economy by around 7.5 percent
this year, Lou reiterated the government's earlier stance that
the target was flexible and did not represent a minimum
expansion rate that must be met.
"The 7.5 percent growth target is not the lower limit," Lou
As such, he said he hoped U.S. authorities could do their
part to keep the U.S. economy growing at a steady clip, and that
Washington should be mindful of the spillover effects of its
ultra-loose monetary policy.
"The normalisation of U.S. monetary policy has drawn wide
attention," Lou said. "We hope the U.S. side can act prudently.
"We look to the United States as the key for promoting
global economic recovery...We hope the U.S. side could take
effective measures to maintain good growth momentum."
(Reporting by Kevin Yao; Writing by Ben Blanchard and Koh Gui
Qing; Editing by Jeremy Laurence and Clarence Fernandez)