China suggests economic consultations to the US

China said Thursday it was willing to boost contacts with the United States to resolve a host of issues that are dogging ties, including a long-standing dispute over the value of the yuan.

Chinese foreign ministry spokesman Qin Gang refused to be drawn on the issue of the yuan in particular, but admitted there were "frictions and issues facing China-US economic and trade cooperation". "We are willing to strengthen communication with the United States," Qin said, noting that "dialogue and consultations on an equal footing" was the best way to put paid to bilateral tensions.

Beijing has effectively pegged the yuan to the dollar since mid-2008, which critics say keeps the currency's value artificially low, making its exports cheaper and thus more competitive on overseas markets. China, the world's biggest exporter, has repeatedly defended its exchange rate policy as necessary for the survival of Chinese manufacturers and supporting jobs growth in the economy, informs the AFP.