Weak Chinese currency not an issue with India: Menon

WASHINGTON: The alleged undervaluation of yuan might have been a thorn in Sino-US relations recently, but a weaker Chinese currency is not an issue with India right now, National Security Adviser Shivshankar Menon has said.

"It is not an issue with India right now, but obviously, it is an issue that concerns the world and there have been attempts to bring it up in the international forum, in the World Bank in G-20," he said in response to a question at the Carnegie Endowment for International Peace -- a Washington-based think-tank.

He said India recently witnessed a "gradual appreciation" of yuan against rupees, but maintained that the issue needs to be worked through.

The issue of undervaluing yuan, which US claims is costing American their jobs, has not yet managed to attain a common global view, Menon said.

"In the Indian economy as well, the importers will tell you it works for us, we get cheap good, manufacturers will tell you it is not a good idea at all," Menon said, indicating that Indian view on this issue does not match with that of the US.

Yesterday, White House reiterated that yuan is undervalued and Beijing needs to reform its currency policy.

The US House of Representative voted 348-79 to pass a legislation that gives the Obama Administration tool respond to alleged Chinese currency manipulation by imposing countervailing duties and anti-dumping measures.

Reacting to this bill, China has said pushing the value of yuan would hurt the global economy.