The United States yesterday renewed pressure on China to strengthen its yuan currency, but Beijing looked set to act at its own pace, something France and others said it should be allowed to do.

China took centre stage on the first day of the World Economic Forum's annual meeting in Davos, Switzerland, befitting its growing role as a world economic power. Its output reached $2.3 trillion (€1.9 trillion) last year, China announced yesterday, making it the fifth-largest economy in the world.

Senior US treasury official Timothy Adams reflected Washington's continued unhappiness with the strength of the yuan, by saying Beijing was not doing enough.

"China needs to undertake serious reforms. They're on the road to reform but they need to move faster," he said, adding that China's revaluation last year had had no effect on the country's booming growth.

"It's more than it was but not enough, and it just goes to show that with these growth rates that they can actually do more," Mr Adams, who is treasury undersecretary for international affairs, said.

"The sliding appreciation we saw since last year has had absolutely no effect on the Chinese economy," he said.

Chinese vice-premier Zeng Peiyan declined to comment on yuan revaluation after delivering a keynote speech to business leaders and policymakers in Davos. The central bank governor addresses the meeting on Thursday.

Mr Zeng did provide some concessions to the United States though. In his speech he laid out ambitious plans to develop China's domestic market over the next five years, something the US has urged in order to create demand for US exports, and Zeng said China would continue with market liberalisation moves.

The United States for months has been pressuring China to allow its currency to climb more quickly in value since its mini-revaluation in July last year. The US argues that the cheap Chinese currency is crowding out US exports.

But Zhu Min, executive assistant president of Bank of China, one of the country's top four banks, held out little hope that Chinese authorities will allow any quick appreciation this year.

"The yuan will appreciate but very, very slowly and in the sense that the US dollar will depreciate just a little bit," Mr Zhu said at a session on issues facing the global economy.

China revalued the yuan by 2.1 per cent against the dollar last July 21st and swapped an 11-year-old dollar peg for a managed float that, in theory, lets the currency rise or fall by 0.3 per cent a day against the dollar.

Its movements within that band have remained small. - (Reuters)