(Adds details, quotes)
BEIJING, July 7 China and the United States will
discuss the yuan's value as well as the impact of U.S. monetary
policy at a meeting this week, Chinese Vice Finance Minister Zhu
Guangyao said on Monday.
Top Chinese and U.S. officials, including U.S. Treasury
Secretary Jack Lew, will hold their annual talks in Beijing on
July 9-10 at a meeting known as the Strategic and Economic
"Both sides will conduct candid and deep policy dialogues on
the RMB (yuan) issue and issues concerning China's domestic
financial reforms," Zhu told reporters at a briefing.
China's central bank was seen engineering a drop in the yuan
earlier this year in a bid to dampen speculative bets
on one-way yuan appreciation. The yuan has been steadying in
Chinese officials have long argued that the yuan is near
equilibrium after rising nearly one-third since its landmark
revaluation in 2005, but the United States remains skeptical,
pointing to the China's solid trade surpluses.
Zhu said China had urged Washington to pay attention to the
possible "spillover effect" of changes in its monetary policy on
the world economy, as the Federal Reserve unwinds its
"We hope the monetary policy of the United States, as the
largest developed country and main reserve currency issuer,
would be responsible," Zhu said.
"As the quantitative easing ends and the process of rising
interest rates - or monetary policy normalisation - starts, we
will have candid discussions with the U.S. side on its impact on
the U.S. economy, the global economy, including China," he
(Reporting by Kevin Yao. Editing by Miral Fahmy)