Bush to push China on yuan reform

US President George W. Bush will pressure China next week to make good on pledges to let markets decide the value of its currency, protect intellectual property rights and allow more religious freedom, a senior aide said yesterday.

Struggling to contain a skyrocketing trade deficit with China, Mr Bush wants President Hu Jintao to liberalise China's currency system and let the yuan rise in value.

White House national security adviser Stephen Hadley said China had done little to regulate the yuan's value since an initial adjustment was announced in July, and that Mr Bush would urge Beijing to take additional steps toward a market-based currency.

"I think the president will urge them to take steps towards their stated objective that market factors be taken into account in the valuation of their currency," he said.

Mr Bush would also urge China to move to protect intellectual property rights. Federal authorities say the counterfeiting of American-made products like films, books and computer programs costs US businesses up to US$250 billion a year and thousands of jobs.

"It is an ambitious vision for China that the president hopes the Chinese will embrace," Mr Hadley said.

Mr Bush will be in Beijing from Saturday to November 21 for talks with Mr Hu and Premier Wen Jiabao .

The US president will also push for greater co-operation in fighting bird flu and battling terrorism, and is expected to discuss efforts to defuse the crisis over North Korea's nuclear weapons.

"I think we have got a very solid relationship that allows us to work candidly together on a lot of common problems," Mr Hadley said.

Mr Bush's visit comes amid increasing concerns in the US about the mainland's military buildup, its soaring trade surplus, tensions over Taiwan, and US criticisms of Beijing's human rights record.

He would tell his hosts that "progress on intellectual property rights, currency reform, and market opening are good for our companies, but they are equally good and important for China's own future prosperity", Mr Hadley said.

Mike Green, National Security Council director for Asian affairs, said the US and China had a mixed relationship where they worked closely on issues like North Korea, but had differences on human rights, religious freedom and some economic matters.

"Our premise is that the Chinese are not looking to challenge the US globally, that China wants to be seen as playing a positive role internationally, and that China can play a positive role," he said.

During the previous Bush-Hu meeting, on the sidelines of the United Nations General Assembly in September, US officials gave their Chinese counterparts a list of specific human rights concerns they hoped to see resolved, US officials said.