Obama tells Wen China must do more on currency

UNITED NATIONS: US President Barack Obama told Chinese Premier Wen Jiabao Thursday China must do more to revalue its yuan currency, in a "candid" two-hour meeting, which did not appear to shift Beijing's position.

The president cited recent US complaints in the World Trade Organization against allegedly unfair Chinese trade practicies as evidence of his determination to act to protect American interests, a senior official said.

The meeting, on the sidelines of the UN General Assembly, came amid increasing frustration in Washington over Chinese economic and trade policies, at a time of heightened political sensitivity ahead of mid-term elections.

A US congressional committee is expected to vote Friday meanwhile on legislation that would expand the Commerce Department's powers to impose tarrifs on China's goods to punish China's purportedly undervalued currency.

Jeff Bader, Obama's top East Asia policy official, said the meeting lasted two hours, and was dominated by the economy, adding that Obama told Wen the foreign exchange row was the "most important issue" they would discuss.

Obama raised with Wen the "need for China to do more than it has done to date," on the yuan," said Bader, senior director for Asia on the National Security Council.