"Recently, there have been some non-harmonious voices in the US criticising the yuan exchange rate," foreign ministry spokeswoman Jiang Yu said in a statement on the ministry's website.

Some in the US are "even bringing up using all possible means to push yuan appreciation. This is unwise and shortsighted," she said.

On Monday, Obama warned Beijing that the the US-China economic relationship must be a "two-way street" in a further toughening of American rhetoric on currency and trade disputes.

The Obama administration maintains that Beijing is keeping its currency artificially low against the dollar to make its exports more competitive, and is showing increasing signs of frustration over the long-running row.

Jiang however reiterated that yuan appreciation alone would not help reduce the huge US trade deficit with China.

Beijing pledged in June to loosen its grip on the yuan, which had been effectively pegged at about 6.8 to the dollar since mid-2008. Since then, the currency has gained about 1.9 percent against the greenback.

Obama charged that the yuan "is valued lower than market conditions would say it should be" during a town hall style-meeting on CNBC television, calling on the Chinese to do more to promote "fair" trading conditions.

"What we've said to them is, you need to let your currency rise... you're getting wealthier, you're exporting a lot, there should be an adjustment there based on market conditions.

"They have said 'yes' in theory but in fact they have not done everything that needs to be done," said Obama, ahead of a meeting with Chinese Premier Wen Jiabao later this week in New York.

"We are going to continue to insist that on this issue, and on all trade issues between us and China, that it is a two-way street," Obama said.

His comments were the latest sharp US signal to China as currency and trade issues become, as always, an explosive issue in the American election season.

US Treasury Secretary Timothy Geithner complained last week that it was "past time for China to move" on the yuan and lift trade barriers.

Despite June's "important" pledge by Beijing, Geithner said the Chinese currency's value was "essentially" unchanged in the past two years because of "very substantial" intervention by the authorities.

earlier related report
EU waives appeal against WTO high-tech product ruling
Geneva (AFP) Sept 21, 2010 - The European Union on Tuesday decided not to appeal a WTO ruling against EU duties on high-technology goods but called on countries to negotiate a new tariff-free deal on such products.

"The EU has decided not to appeal and will instead focus its efforts on implementation and -- in the hope other WTO members will now engage -- negotiations of an updated Information Technology Agreement which will be fit for the 21st century," a EU diplomat told a World Trade Organization meeting.

The WTO had ruled in August that EU duties on products including television set-top boxes, flat-screen panels and printers with multiple functions violated the ITA, an accord that eliminated duties for high-tech goods.

The EU justified the taxes saying that the products in question had taken on multiple functions and therefore did not fall under the ITA.

On Tuesday, the EU told WTO member states it was disappointed with the WTO's ruling on the case brought by the United States, Japan and Taiwan.

At the same time, Brussels called on member states to negotiate a revised ITA that took into account the fact that many new high-tech products now take on multiple functions.

"The EU remains of the view that it is by negotiation, not by litigation, that the scope of the ITA needs to be extended, and renews its call for an update of the ITA," it said.

With the EU's decision not to go ahead with an appeal, the findings by the WTO panel have been adopted by the trade body, thereby requiring Brussels to drop the taxes deemed to have violated WTO rules.

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