Chinese President Affirms Yuan Reform

Chinese President Hu Jintao reiterated China's willingness to reform the yuan exchange rate despite the lack of a timetable.

"China will continue to steadily advance the reform of the formation of the yuan exchange rate mechanism under the principle of independent decision-making, controllability and gradual progress," Hu said in a speech delivered to the opening ceremony of the China-US Strategic & Economic Dialogue on May 24.

Hu also said he hoped the dialogue would "build a foundation of mutual trust" between the two sides and that both countries should work together to promote the world's economic recovery.

U.S. Treasury Secretary Timothy Geithner said he welcomed China's recognition of the exchange rate reform's significance.

Ahead of the dialogue, Chinese officials talked about the exchange rate issue. On May 20, Zhu Guangyao, assistant to the finance minister, said that exchange rate reform is within the jurisdiction of a sovereign country and pressure from other countries will only delay the process.

Some U.S. congressmen accused China of gaining unfair advantages in bilateral trade by manipulating its currency exchange rate. They have been clamored for a revaluation of the yuan for years.