Beijing to press US to unwind stimulus

China said it will press the US at next week’s Sino-US Strategic and Economic Dialogue (SED) to unwind its stimulus policy to alleviate inflationary pressure, the Wall Street Journal reported. Vice-Premier Wang Qishan will also urge the US to stabilize the dollar and protect China’s dollar assets through responsible fiscal and monetary policies. Beijing remains concerned that the US economic stimulus package, in combination with loose monetary policy and deficit spending, will degrade the value of its sizable dollar reserves. US Treasury Secretary Ben Bernanke said Tuesday the US economy is still too weak to begin tightening monetary policy but did detail plans to withdraw the hundreds of billions of dollars Washington has poured into the US banking sector to keep it afloat. Left in the banking system too long, the cash could fuel inflation.