WASHINGTON, Dec 2 (Reuters) - U.S. Treasury Secretary Henry Paulson said on Tuesday that China needs to introduce more measures to boost domestic demand and rely less on exports to help a weakened global economy.
Speaking to the World Affairs Council just before heading for Beijing for two days of talks, Paulson said it was vital that China continue to let its currency rise in value and open its markets.
"Continued reform of China's exchange rate policies is an integral part of this broader reform process," Paulson said. "China has appreciated the RMB over 20 percent against the dollar since 2005 -- this is important and significant, but it is important that the process continue," Paulson said.
China's currency, the yuan, is also known as the renminbi or RMB.
Paulson will be participating in a fifth and, for him, final round of a so-called "strategic economic dialogue" with China that he initiated in 2006. It is unclear whether the incoming administration of President-elect Barack Obama will continue the effort.
Paulson praised China for playing a "responsible role" during the current global economic turmoil and said it was vital that it and others "take whatever further actions are necessary to stabilize the financial system, including using appropriate monetary, fiscal and financial regulatory policies."
He said the Beijing talks, on Thursday and Friday, will include discussions on how the United States and China can work through international forums to strengthen the global economy.
The Bush administration has been pushing for institutions like the International Monetary Fund to be given a larger supervisory role over global economic policies, including exchange rates.
Along with currency, Paulson said the large U.S. delegation will also discuss consumer and product safety issues as well as how to maintain open investment policies.
Paulson noted China announced a major fiscal stimulus package in early November to spur domestic demand and urged it to continue to do all it can to boost growth at home. (Reporting by Glenn Somerville; Editing by Neil Stempleman)