LEAD: Obama meets Chinese president, presses on currency

By Bill Smith Nov 13, 2011, 4:19 GMT

Honolulu, Hawaii - US President Barack Obama met his Chinese counterpart Hu Jintao on Saturday for talks that were expected to focus on trade and international issues such as Iran and North Korea.

Obama and Hu met on the sidelines of an Asia-Pacific leaders' summit, where Obama earlier Saturday highlighted the issue of China's 'undervalued' renminbi currency.

Before the start of private talks with Hu, Obama noted 'areas where we continue to have differences,' but said he was 'confident that the US-China relationship can continue to grow in a constructive way based on mutual respect and mutual interests.'

He said he expected to discuss economic growth, trade, climate change and 'a range of both regional and global security issues.'

The security issues included North Korea and Iran, Obama said.

Hu said it was important for the United States and China to cooperate at a time when 'the international situation is undergoing complex and profound changes.'

'There is growing instability and uncertainty in the world economic recovery, and regional security threat has become more salient,' the Chinese president said.

'Under these circumstances, it is all the more important for China and the United States to increase their communication and coordination.'

Hu said the two nations should 'respect each other's major concerns, appropriately manage sensitive issues, and ensure that the China-US relationship will continue to grow on a sustainable and stable path.'

In his earlier remarks to Asian business leaders, Obama said the US wanted to see China 'play by the rules' of international trade.

'There are very few economists who do not believe that the RMB (renminbi) is not undervalued,' he said. 'And that makes exports to China more expensive, and it makes exports from China cheaper.

'That disadvantages American business, it disadvantages American workers,' Obama said. 'And we have said to them that this is something that has to change.'

Chinese Commerce Minister Chen Deming on Friday defended the gradual appreciation of the currency, saying it was 'at a basically reasonable level.'

Chen also said that 'adjusting the (exchange) rate can't solve the US trade deficit with China,' Chinese state media reported.

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