US urges China to make 'more movement' over yuan

The White House reacted cautiously to an announcement from China that it was loosening up its currency controls saying it would like to see "more movement."

"They've made some progress, we'd like to see more movement. We noted this announcement. We're reviewing it closely," a top administration advisor, Ben Rhodes, told reporters on the sidelines of a regional summit in Colombia.

"It comes in the continuum of us wanting to see the Chinese take more of these steps to see their currency appreciate to come in line with the market value," added Rhodes, the deputy national security advisor.

The yuan is currently allowed to trade 0.5 percent on either side of a midpoint price set by the central bank every trading day.

The new rules announced Saturday by China's central bank -- seen as a shift towards adopting more market-oriented reforms -- will come into effect on Monday and allow the currency to fluctuate by up to 1.0 percent either side.

The United States and Beijing's other trading partners have long criticized China's yuan exchange rate, saying it is kept artificially low, fuelling a flow of cheap exports that have helped trigger huge trade deficits.

Chinese Prime Minister Wen Jiabao however acknowledged last month that the yuan had increased in value by some 30 percent since 2005 in comparison to the dollar.

  • Volkswagen brings new (ish) Jetta to New York along with Golf Sportwagen 28 minutes ago
    Volkswagen brings new (ish) Jetta to New York along with Golf Sportwagen

    With its new President and CEO of America, Michael Horn, on stage in New York after just 100 days on the job, Volkswagen debuted its 2015 Jetta. You'd be forgiven for noticing little differences compared to the outgoing model, and in the words of Horn himself, the changes are indeed subtle. The most notable of those subtleties is the all-new 2.0 liter turbo diesel motor, offering 45 mpg highway and a modest increase of 10 hp. For VW, diesel is where it's at.

  • With Vantage GT, Aston Martin races below $100,000 1 hour 6 minutes ago
    With Vantage GT, Aston Martin races below $100,000

    Aston Martin is going downmarket, sort of. The 2015 Vantage GT, a sport-styled variant of Aston’s legendary flagship car, draws style and performance tips from their GT4 race cars, which will be running in North America this year. It’s also priced at $99,900, which shows that the market for these kinds of consumer sports cars has boomed in recent years.

  • Ford plants a new Mustang on the Empire State Building in style 3 hours ago
    Ford plants a new Mustang on the Empire State Building in style

    Fifty years ago this week, Ford made history by staging the greatest car launch in history — building up the drama around its new Mustang with stunts like papering over dealership windows and landing on the covers of both Time and Newsweek magazine. To celebrate its anniversary, Ford re-created a stunt it last pulled off in 1965 — landing a new Mustang on the 86th floor of the Empire State Building.