Treasury Secretary Jacob Lew on Friday spoke with China's Vice Premier Wang Yang and told him the Obama Administration is watching closely how China implements its new foreign exchange regime, a Treasury spokesperson said Friday. In the phone call, Lew said it was critical that China continue with reforms designed to move toward an economy driven by household consumption rather than exports. China has said its recent devaluation was a step toward a more flexible currency but many observers said this justification masked a desire by the Chinese government to boost its sagging export sector. Lew and Wang also discussed the upcoming visit by Chinese President Xi Jinping to Washington in September. Lew said the visit "will be an important opportunity to make progress on issues vial to our economic relationship."
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