U.S. push China to let the yuan appreciate
Mr. Geithner is expected to outline the U.S. rationale for why China should allow its currency, the yuan, to rise, according to U.S. government officials. The U.S. doesn't expect to come out of Beijing with an explicit agreement on the currency, officials said. But they added there are 'encouraging' signs the Chinese are preparing to let the yuan appreciate.

Last month, People's Bank of China Gov. Zhou Xiaochuan indicated that the yuan's de facto peg to the dollar since mid 2008 was a temporary response to the global financial crisis that would be lifted at some point. And while Chinese government officials and commentators have made clear that any change in currency policy must be driven by China's own interests, some have suggested China wants to avoid a showdown with the U.S. on the issue.
On Tuesday, Ba Shusong, deputy director-general of Financial Research Institute with the Development Research Center of the State Council, said at a Tuesday briefing with reporters that a confrontation between China and the U.S., two important world economies, would hurt the global recovery.
Mr. Geithner, who has consistently said it is in China's interest to move on its currency, is expected to tell Mr. Wang that China's economy would benefit from a more-flexible exchange rate, likely citing such factors as the limitations that a fixed exchange rate puts on China's ability to control monetary policy, and the need to become less dependent on exports.

Many U.S. lawmakers say China keeps the yuan artificially low so it can sell exports more cheaply to other nations and gain an advantage in global trade. The Group of 20 industrial nations last r agreed to seek what it called a 'rebalancing' of the global economy, a goal that also requires China to let its currency appreciate.
Economists following the issue increasingly view a widening of the yuan's daily trading band as a likely compromise solution. Such a shift would allow China to publicly signal it is moving to more exchange-rate flexibility, while allowing it to retain control over the trajectory of the yuan's value.
China watchers said the Asian giant will likely feel pressure to move before a series of international meetings, including the U.S.-China Strategic and Economic Dialogue next month and several meetings of leading finance ministers and central bankers.