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

(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 no agreements on the currency and failed to
quell calls in Congress for sanctions against China.


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