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White House invites China for G-7 talks
(AP)
Updated: 2005-09-20 06:57

WASHINGTON - The Bush administration, facing growing unhappiness in Congress over America's soaring trade deficit with China, will get a chance this week to present its concerns to top Chinese economic officials. AP reported.

Both Finance Minister Jin Renqing and Zhou Xiachuan, the head of China's central bank, have been invited to attend a luncheon meeting on Friday where Treasury Secretary John Snow and Federal Reserve Chairman Alan Greenspan will serve as hosts.

The discussions will be part of a gathering that the world's seven richest industrial countries will be holding to get the views of China and four other major developing countries — Russia, India, Brazil and South Africa.

In announcing the invitations to China and the other countries on Monday, Treasury spokesman Tony Fratto refused to go into details about what topics would be discussed.

However, it was expected that currencies would play a role in the talks, given that the United States has made a major effort over the past two years to gain support from its G-7 allies for a united front in pressing China to allow its currency to rise in value.

China announced June 30 that it was moving away from a decade-long system in which it tightly linked the value of its currency, the yuan, to the U.S. dollar. However, after the initial small rise in value of 2.1 percent, the yuan has remained stuck at a level that analysts say is far too low to make a dent in America's ballooning trade deficit with China.
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