What is wrong with this picture? Bush, Hu Discuss Chinese Currency Policy Thu Oct 7, 2004 10:36 AM ET WASHINGTON (Reuters) - President Bush spoke to Chinese President Hu Jintao on Thursday about what the White House called Beijing's commitment to steadily move to a flexible exchange rate. "The leaders ... discussed economic issues, including China's commitment to move forward firmly and steadily to a market-based flexible exchange rate," White House spokesman Scott McClellan said. Bush and Hu spoke by telephone. Beijing has held firm to its gradual approach toward more foreign exchange flexibility despite pressure from Washington. Last week, U.S. Treasury Secretary John Snow said the United States wanted quicker movement on the yuan currency. China's peg is a politically touchy issue in the United States. U.S. manufacturers and labor groups complain it gives Chinese exports an unfair price advantage on world markets and exacerbates the large U.S. trade gap. McClellan said Bush and Hu also discussed the nuclear standoff with North Korea. "President Hu reiterated China's commitment to the six-party talks," McClellan said. He said Bush told Hu he opposed any "unilateral attempts to change the status quo" in the Taiwan Strait. First, they talked about exchange rates and then about North Korea.
