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Beijng - China said Tuesday that US pressure on Beijing to boost the value of the yuan was "unwise and shortsighted", after US President Barack Obama criticised the country's exchange rate policy.
"Recently, there have been some non-harmonious voices in the US criticising the yuan exchange rate," foreign ministry spokesperson Jiang Yu said in a statement on the ministry's website.
Some in the US are "even bringing up using all possible means to push yuan appreciation. This is unwise and shortsighted," she said.
On Monday, Obama warned Beijing that the the US-China economic relationship must be a "two-way street" in a further toughening of American rhetoric on currency and trade disputes.
The Obama administration maintains that Beijing is keeping its currency artificially low against the dollar to make its exports more competitive, and is showing increasing signs of frustration over the long-running row.
Jiang however reiterated that yuan appreciation alone would not help reduce the huge US trade deficit with China.
Beijing pledged in June to loosen its grip on the yuan, which had been effectively pegged at about 6.8 to the dollar since mid-2008. Since then, the currency has gained about 1.9% against the dollar.
Obama charged that the yuan "is valued lower than market conditions would say it should be" during a town hall style-meeting on CNBC television, calling on the Chinese to do more to promote "fair" trading conditions.
"What we've said to them is, you need to let your currency rise... you're getting wealthier, you're exporting a lot, there should be an adjustment there based on market conditions.
"They have said 'yes' in theory but in fact they have not done everything that needs to be done," said Obama, ahead of a meeting with Chinese Premier Wen Jiabao later this week in New York.
"We are going to continue to insist that on this issue, and on all trade issues between us and China, that it is a two-way street," Obama said.
His comments were the latest sharp US signal to China as currency and trade issues become, as always, an explosive issue in the American election season.
US Treasury Secretary Timothy Geithner complained last week that it was "past time for China to move" on the yuan and lift trade barriers.
Despite June's "important" pledge by Beijing, Geithner said the Chinese currency's value was "essentially" unchanged in the past two years because of "very substantial" intervention by the authorities.
