WASHINGTON: The United States on Thursday acknowledged that China's currency had appreciated but said it would seek more movement when senior leaders of the world's two largest economies meet next week.
David Loevinger, a senior Treasury Department official who handles China, said that we "absolutely see a change in tone" over the past year as Beijing increasingly sees a threat from inflation.
"Eighteen months ago, the Chinese exchange rate was frozen; today it's moving," Loevinger told reporters ahead of the two-day Strategic and Economic Dialogue opening Monday.
"Next week, we are going to press China to let its exchange rate adjust at a faster pace to correct its still substantial undervaluation," he said.
By his own calculation, the yuan has risen five percent against the dollar since June last year, or 10 percent if taking into account inflation.
China has come under strong criticism for years from the United States and other major trading partners, which accuse Beijing of keeping its yuan artificially low to fuel a flood of cheap exports.
But the dynamics have changed in recent months as China grows concerned about inflation. China's consumer price index rose 5.4 percent year-on-year in March -- the fastest pace since July 2008 and well above the government's 2011 target of four percent.
Pressure has also subsided in Washington after the Republican Party won last year's congressional elections in which many candidates from President Barack Obama's Democratic Party blamed China's trade practices for US economic woes.
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