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Last Updated: Thursday, 13 December 2007, 16:50 GMT
No yuan deal at US-Chinese talks
Chinese Vice Premier Wu Yi and US Treasury Secretary Henry Paulson
The talks failed to reach agreement on the key issues
China and the US have ended two days of trade negotiations with very little apparent progress on their key issues of dispute.

China agreed to increase safety standards on exports to the US, prompting Chinese Vice Premier Wu Yi to declare the talks a "complete success".

US Treasury Secretary Henry Paulson said the meetings in China provided a foundation for further co-operation.

Yet there was no deal on the yuan and China's giant US trade surplus.

Mr Paulson added that the US had also got agreement from Beijing that China would make it easier for American firms to work in the country.

Yuan appreciation

Washington has long been angered that China does not allow the yuan to float freely, saying the artificially low currency makes Chinese exports unfairly cheap.

We also both recognize the need to fight economic nationalism in our two nations
US Treasury Secretary Henry Paulson

Although Beijing has allowed the yuan to appreciate by 6% this year, analysts say it still remains below its true market level.

As a result, Chinese exports to the US have soared in recent years, and China's trade surplus with America is on track to hit a record $233bn (114bn) this year.

Despite the lack of a breakthrough on these two key issues at the talks in Beijing, Mr Paulson said progress had been made.

He said both sides understood "the importance of balanced growth in both our nations".

"We also both recognise the need to fight economic nationalism in our two nations," he added.

Ms Wu said the China could not be blamed for US consumer demand for inexpensive Chinese products.

Beijing has long maintained that it cannot increase the value of the yuan any faster, for fear of unsettling its export-dominated economic boom.

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