China after being discriminated by Washington said that next week it would discuss this matter at high-level talks. On Friday, China also urged Washington to take care of its huge financial deficit

U. S. has demanded Beijing to bring a drastic increase in the value of its Yuan currency and at the same time has also urged to end a crackdown on dissent. These two demands of U. S. are no less than two nuisance factors among the world’s two biggest economies. Therefore it has been stated by a senior Chinese official, that with next week’s Strategic and Economic Dialogue in Washington, such a matter would at least gain a little base.

Chinese Vice Finance Minister, Zhu Guangyao considering the fiscal deficit with a lot of attention, told the reporters "We hope that the United States in its fiscal clean-up will be able to adopt effective measures based on President Obama's proposal. For the present stage, we believe that the most crucial thing is that the U. S. economy maintains a vigorous impetus towards recovery and that this developing trend is maintained".

China is known to have the world's biggest foreign exchange reserves, and out of it, around two-thirds of them are estimated to be held in dollars. Therefore any sort of policy uncertainty could directly ripple through global markets.