Barack Obama sought to defuse the US-China confrontation over the renminbi on Tuesday by acknowledging Chinese sensitivities about the US campaign for currency appreciation.
Speaking at the end of the nuclear security summit he hosted in Washington, the US president depicted the relationship with China as increasingly productive – a sign of his administration's growing confidence that Beijing is moving the way the US wants on the renminbi and sanctions on Iran. The two issues are among Mr Obama's international priorities.
“China rightly sees the issue of currency as a sovereign issue,” he said when asked about his meeting on Monday with Hu Jintao, China's president. “They are resistant to international pressure when it comes to them making decisions about their currency policy and monetary policy.”