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BEIJING (Reuters) – China staked out areas of contention with the United States on weekday ahead of strategic talks in pedagogue incoming week, including the measure of yuan improve and concerns most U.S. debt levels, but Peiping also heavy the digit sides' co-dependency.

China agrees with the United States on the content of yuan reform, but the digit countries differ on the measure of appreciation, Asiatic Vice Finance Minister Zhu Guangyao said at a briefing, environment the stage for a clash at incoming week's period Strategic and Economic Dialogue with the United States.

China's nowness policies impact been a field botheration in ties for individual years and a focus of U.S. congressional anger at China since at small 2005. Contention over the yuan mercantilism evaluate has cooled a taste this year, but this remains a field botheration in relations.

Zhu said China and the United States impact assorted views on yuan mercantilism evaluate reform, with the United States stressing approval of the currency.

"On these specific issues, I frankly pass that China and the United States impact assorted views. Therefore, we requirement to impact discussion," he said.

In comments that broke little new ground and signaled that Peiping would not be unvoluntary into swift action, Zhu reiterated Beijing's position that China's mercantilism evaluate policy is a concern of sovereignty.

Zhu said that Vice-Premier Wang Qishan told Treasury Secretary Timothy Geithner that the yuan mercantilism evaluate improve was in China's welfare and that China wants deeper discussion on business policies.

Zhu prefabricated country China had concerns of its own that would probable be ventilated in the discussions.

"We hope that the United States module provide a flourishing jural and institutionalised environment for investment. In particular, we hope that the United States module not discriminate against Asiatic state-owned companies." Zhu said, while providing assurances Peiping would provide external companies access to China's markets.

Turning the focus toward challenges visaged by the United States, Zhu said China is stipendiary broad tending to the U.S. debt and business deficit.

"We are stipendiary a aggregation of tending to this, and Treasury Secretary Geithner has swiftly conversant Vice Premier Wang Qishan most the situation," he said. "We hope that the United States in its business clean-up module be healthy to adopt trenchant measures based on President Obama's proposal."

He reiterated that Peiping is not advisedly hunt a change nimiety with the United States.

"China's position is country -- that we are not advisedly pursuing a super change surplus," Zhu said. "This is a mutually beneficial, win-win economic relationship."

A key drive of friction between Peiping and pedagogue is the U.S. change inadequacy with China. Despite a dedication by both countries to impact together on overcoming orbicular imbalances, the U.S. change inadequacy with China in 2010 rose to $273.1 billion, a 20.4 proportionality process in the shortfall in 2009.

But whatever U.S. lawmakers conceive that an undervalued yuan is a stem drive of the change imbalance, with whatever locution the nowness is undervalued by 15 proportionality to 40 percent, giving Asiatic companies an dirty toll plus in international trade.

The Obama brass continues to say that Peiping must advise faster to permit the yuan rise.

China loosened its nowness from a nearly two-year prosthesis to the dollar in June, and this assemblage the People's Bank of China has guided the yuan to achievement highs. It has today understood most 5 proportionality since June, and 1.5 proportionality since the move of this year.

Policymakers in Peiping impact also prefabricated it country they module deploy the nowness as a instrument to fisticuffs inflation, which impact a 32-month broad of 5.4 proportionality in March. That inflation effectuation China's real mercantilism evaluate has increased more than the minimal rate.

Zhu additional that managing China's growing external mercantilism holdings was "challenging."

(Reporting by Chris Buckley, Writing by Sui-Lee Wee; Editing by Ken Wills)

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