Yuan's Level Isn't the Cause of the U.S. Trade Deficit With China, Wu Says

(Bloomberg) -- The yuan isn't the cause of the U.S.
trade deficit and a ``large'' appreciation would hurt China's
economy, Vice Premier Wu Yi said, signaling the nation won't
cave in to demands for faster gains.

``China will continue to reform its exchange rate on its
own initiative, gradually,'' Wu said at a dinner in Washington
after two days of talks with U.S. Treasury Secretary Henry
Paulson that yielded only minor agreements and failed to quell
calls in Congress for sanctions against China.


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