U.S. Treasury Secretary John Snow, left, shakes hands with Chinese Premier Wen Jiabao during their meeting in Beijing Monday, Oct. 17, 2005. [AP]

China affirmed on October 17 its intention to enhance the flexibility and strengthen the role of market forces in its managed floating exchange rate regime.

    Concluding the 17th Session of the China-US Joint Economic Committee in Beijing, China and the United States agreed that exchange rate policy was a sovereign decision, but can have a global impact.

    Excess volatility and disorderly movements in exchange rates are undesirable for economic growth, the two sides reaffirmed in a joint statement.

    US Secretary of the Treasury John Snow said at an earlier press conference yesterday that he was encouraged by China's progress in reforming its exchange rate regime and developing the financial markets to aid economic growth.

    But he also said it would take time for China to prepare for further reform moves, including building necessary financial infrastructure, telling reporters: "We recognize that's going to take some time. China is clearly taking s