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Jan. 29, 2009 / 10:19 PM

China defends currency policy

BEIJING, Jan. 29 (UPI) -- Chinese Premier Wen Jiabao Thursday defended China's exchange rate policy, responding to White House criticism.

The Financial Times reported that Wen said Beijing's currency policy was "orientated towards market needs" and "flexible."

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U.S. Treasury Secretary Tim Geithner last week accused China of manipulating its currency to support exports. Wen said China was not responsible for dramatic fluctuations in currency values.

In a meeting between Wen and German Chancellor Angela Merkel, both leaders said Wen had no desire to run a trade surplus.

Wen said they would discuss ways Chinese companies could purchase more German technology.

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