U.S. Treasury Secretary John Snow on Tuesday urged China to adopt a more flexible, market-driven currency while applauding the recent upswing in Japan's economy. Chinese officials said the currency issue would be discussed during a visit by Snow and Federal Reserve Chairman Alan Greenspan to Beijing this week _ but they gave no sign Beijing would move faster in loosening its controls on the yuan. Foreign Ministry spokesman Kong Quan, speaking in a regular press briefing, urged the U.S. side to "heed fully the Chinese position on exchange rate reform." Snow wrapped up a visit to Japan Tuesday before heading on to Shanghai. The trip comes amid ballooning American trade deficits and increased trade tensions with the two Asian export powers. While in Tokyo, Snow applauded China's step to cut the yuan's link to the U.S. dollar but said more action is needed. "We are anxious to see the Chinese fulfill the commitment they made to allow market forces to play a larger role in setting their currency's value over time," Snow said during a press conference at the U.S. Embassy. "They've gotten on the path that allows them to do so and we'd like to see China continue on that path."
