China 'could play fairer' on trade

US Secretary of State Condoleezza Rice said China "could play fairer' on trade and currency matters. US officials have repeatedly said they believe the Chinese currency is undervalued, giving an unfair edge to Chinese manufacturers, and that the country needs to live up to its obligations to reform the yuan and to open up its economy.

Asked if China played fair on trade and currency, Ms Rice said "China could play fairer" in an interview with CNBC's "Closing Bell with Maria Bartiromo" programme.

Ms Rice said US Treasury Secretary Henry Paulson has called for greater access to the Chinese market, for "reform of the currency to one that will be reflective of the market" and for greater respect for intellectual property rights.

She also stressed that China needed to live up to World Trade Organisation rules. "China now has to absolutely live up to those rules," she said.

"On balance, a growing, strong Chinese economy is going to be a good thing for the international system. But it has to be a growing, strong Chinese economy that plays within the rules," she added.

US lawmakers have grown increasingly frustrated with what they see as an undervalued yuan that gives a big price advantage to Chinese manufactured goods, costing American jobs.