UPDATE 2-Chinese diplomat rejects U.S. yuan criticism

(adds more details on British visit)

By Daisy Ku and Adrian Croft

LONDON, Jan 28 (Reuters) - The United States has enough evidence to know that China does not manipulate its currency's exchange rate and it would be unfair for Washington to change its view suddenly and say that it does, a Chinese diplomat said on Wednesday.

U.S. Treasury Secretary Timothy Geithner said last week, before taking office, that President Barack Obama believed China was "manipulating" its yuan currency.

However, the White House has said a formal decision on the issue would probably be made in the spring.

The Chinese diplomat, speaking to reporters on condition of anonymity before Premier Wen Jiabao visits London, said the U.S. Treasury has consistently refrained from saying China manipulates its currency to boost its exports.

"I don't think it's fair all of a sudden to change the position of the U.S. government," he said in response to a question on Geithner's comment. "They have enough evidence to show that China did not and does not manipulate the renminbi (yuan) exchange rate."

China's central bank has called the U.S. accusation of manipulation misleading.

The Chinese diplomat also said that commercial contracts would be signed during Wen's visit to Britain.

He declined to name the companies involved but said they were in the manufacturing, telecommunications and clean energy sectors and "probably" in aviation.

Britain and China are also expected to sign agreements on cooperation in regional cities in central and western China and on intellectual property rights agencies, he said.

CURRENCY CONCERNS

The United States and other industrialised nations have long called on China to let its currency rise against the dollar because they worry it undermines their firms' competitiveness.

The previous U.S. administration shied away from formally citing China as a currency manipulator.

The Chinese diplomat said currencies could also come up in Wen's meetings with British Prime Minister Gordon Brown.