Obama Pressures Chinese President to Revalue Yuan

US President Barack Obama greets his Chinese counterpart Hu Jintao before a dinner at the Washington Convention Center during the Nuclear Security Summit in Washington, DC, on April 12, 2010. AFP PHOTO/Jewel SAMAD

U.S. President Barack Obama told Chinese President Hu Jintao in Washington Monday to adopt a more "market-oriented" exchange rate for the Chinese currency.

Before the official opening of the U.S. nuclear summit, Mr. Hu said China will "firmly stick" to its own path for reforming its currency, the yuan.

China's official Xinhua news agency reported that Mr. Hu told President Obama that increasing the yuan's value will not solve U.S. unemployment problems nor shrink the trade deficit between Washington and Beijing.

The United States has said Chinese currency controls keep the value of the yuan artificially low, making Chinese products cheaper on the global market. Mr. Obama has said international markets should determine how much the yuan is worth.

President Obama and President Hu met Monday for the first time since Mr. Obama visited China late last year.

Chinese state media said Monday that since the meeting in Beijing, China-U.S. relations have seen positive developments due to efforts on both sides.

Sources of contention between the two countries include U.S. arms sales to Taiwan and visits to the U.S. by the exiled Tibetan spiritual leader the Dalai Lama, whom China considers a separatist.

Some information for this report was provided by AFP and Reuters.