Hillary Clinton, met Hu during an annual high level dialogue at which complaints about currency controls are a key issue.
The dialogue has been overshadowed by a tussle over a Chinese legal activist but comes as pressure on the US and other Western governments to create jobs are fueling disputes with Beijing.
Geithner and other US officials at this week’s talks have urged Chinese leaders to press ahead with promised market oriented reforms they hope will expand sales for foreign companies in China’s heavily regulated economy.
“We consider the broad direction of the economic reforms that you have laid out _ to move to a more market oriented exchange rate system, to expand consumption and domestic demand, to open up the Chinese economy further to foreign competition, to create a more modern financial sector we think these are very promising reforms,” Geithner told Hu.
Beijing has allowed its yuan to strength gradually and in April widened the band in which the tightly controlled currency is allowed to trade each day.
Some US lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act faster.
In a speech last week, Geithner complained an undervalued yuan was a source of “unfair competition” and hurts foreign companies at a time when China’s trading partners are trying to boost exports.
He called for a “stronger, more market determined” exchange rate and said that would help the global economy.
On Friday, Geithner told Hu that despite “inevitable tensions” in US Chinese ties, “we are building a stronger economic relationship.
Hu said the annual dialogues have “achieved positive agreements” but did not comment on specific disputes during a portion of the meeting reporters were allowed to see.
Beijing is in the midst of a multiyear effort to boost domestic consumption and reduce reliance on exports and investment but change has been slow.
Foreign governments and business groups complain Beijing is hampering market access and trying to shield Chinese companies in promising industries such as renewable energy despite its market opening pledges.
Chinese authorities announced their own probe in November into whether US support for renewable energy companies hurts foreign suppliers.
At a breakfast meeting Friday with US businesspeople and Geithner’s Chinese counterpart, Vice PremierWang Qishan, the chairman of Ford Motor Co.
“We get mixed signals regarding electric vehicle requirements,” said the executive, David L.
The annual talks are aimed at heading off trade clashes between the world’s two biggest economies and promoting cooperation on a wide array of environmental, financial and other issues.
Kenneth Kennedy is a business journalist based in Hong Kong, China. Kenneth has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Kenneth spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.
