China insists trade imbalance not currency-related

The US says President Barack Obama plans to raise the issue of China's currency value during President Hu Jintao's state visit later this month.

China says the value of the yuan is not the main cause of the trade imbalance with the United States, in the wake of comments from Washington that President Barack Obama plans to raise the currency issue when President Hu Jintao makes a state visit to the US later this month.
Beijing's foreign ministry spokesman Hong Lei says the imbalance is due to the "international division of labour" and to US export restrictions on high-tech products.
Speaking to reporters, Mr Hong said China will continue to advance reform of its exchange rate mechanism, adding Beijing has taken measures to increase imports from the United States and to promote balanced trade.
"That proves that the [yuan] renminbi exchange rate is not the main cause of the China-US trade imbalance," he said.
Critics say China keeps the yuan artificially undervalued to gain an unfair trade advantage that has cost thousands of US jobs.
Last June China promised to allow the yuan to trade more "flexibly", but since then the currency value has only appreciated by about three percent.
White House spokesman Robert Gibbs told reporters today that Washington will keep pressure on Beijing to strengthen the yuan.
"China plays an enormously important role in our global economy, and China has to take steps to rebalance its currency," he said.
"And the president will continue to make that point when President Hu is here." (From ABC News)