Washington: Treasury Secretary Henry Paulson will raise US concerns about the pace of China's currency appreciation and Tibet unrest at bilateral economic talks next week in Beijing, a senior US official has said.

China's yuan currency has increasingly appreciated in the past two years and that pace "should continue," said Alan Holmer, special envoy for China and the US-China Strategic Economic Dialogue yesterday.

The yuan, or renminbi, had gained "a little over 18 per cent" since July 2005, he said.

"The accelerating rate of appreciation is significant and welcome and we believe it should continue," he told a news conference on Paulson's trip next week to China.

President George W Bush's administration has stressed the need for dialogue with China on the sensitive issue, battling US lawmakers moves to punish China for allegedly keeping its yuan undervalued to support the ballooning Chinese trade surplus with the US that critics say has cost American jobs.

The "best way" to encourage the Chinese government to liberalise its economy is "through intensive dialogue," he said, citing the SED framework and Paulson's talks with the International Monetary Fund and other organisations.

Paulson is set to meet with Chinese government officials, including the newly appointed leadership, next Wednesday and Thursday as part of the Strategic Economic Dialogue.

The bilateral framework to address economic issues of mutual concern was launched by Bush and his Chinese counterpart, Hu Jintao, in 2006.

Paulson's visit will help lay the groundwork for the fourth cabinet-level SED meeting in June in Washington, Holmer said.
Source : PTI