Flaherty to pressure China on yuan

Canada will be pressing China at upcoming G20 meetings in June to let its currency appreciate, Finance Minister Jim Flaherty said Tuesday.

China's fixed exchange rate for the yuan will be up for discussion at the meetings in Toronto, and before then at ministerial meetings, Flaherty said.

The United States has been applying pressure which China has so far strongly rebuffed, but Flaherty said the issue is critical for the global economy.

"We have some significant global imbalances and there's no point in sweeping significant issues under the rug," he said.

The U.S. wants the yuan to rise to make its exports more competitive in China and to help American products compete with Chinese imports in the U.S. domestic market.

China sees the low value of its currency as a critical ingredient in expanding its exports and its economy.

Flaherty said industrial countries, which are net importers in trade with China, have something to offer in exchange by pledging to not enact protectionist measures.

"There's a give and take that has to happen here," he said. "There has to be a continued, persistent fight against protectionism, [and] that's always a major concern to a exporting country like China."