Hu meets Congressional leaders, currency on agenda

Chinese President Hu Jintao is meeting with Congressional leaders on Thursday, with discussion of the yuan on the agenda.

The morning meetings come on the third of four days the Chinese leader is visiting the U.S.

Hu was meeting with House Majority Leader Harry Reid, D-NV on Wednesday morning, according to his office. Hu was also set to meet with House Speaker John Boehner R-OH.

Reid said Thursday that among the issues he would bring up for discussion was China's currency, according to a published report.

Some U.S. lawmakers have called China a currency manipulator and want to pass legislation to address it.

The U.S. and China issued a joint statement on Wednesday after Hu's meetings with Obama.

China will continue to promote RMB exchange rate reform and enhance RMB exchange rate flexibility, and promote the transformation of its economic development model, the statement said. RMB refers to the yuan, the Chinese currency.

Obama said in a joint press conference with Hu earlier in the day that we welcome China's increasing flexibility of its currency. He said Hu has indicated he's committed to moving towards a market-based system.

However the yuan remains undervalued, Obama said.

President Hu has indicated he’s committed to moving towards a market-based system. And there has been movement, but it’s not as fast as we want, Obama said.

Ahead of Hu's visit U.S. Sens. Olympia Snow, R-Maine, and Sherrod Brown, D-OH sent a letter to Reid urging him to take action on legislation that would direct the U.S. Department of Commerce to treat currency undervaluation as a prohibited export subsidy.

The legislation would ensure the government is equipped to respond on behalf of American workers and manufacturers by imposing countervailing duties on subsidized exports from countries like China, according to a release by the senators.

A day earlier, Sen. Charles Schumer, D-NY also said he would pursue similar legislation.