U.S. Would Benefit from Chinese Currency Shift

The Chinese government is expected to announce it will strengthen its currency and make it more flexible, a move that would benefit the United States by leveling out some trade imbalances.

The announcement could come before China's president, Hu Jintao, visits Washington next week for meetings with President Obama, The New York Times reported.

China would take steps to help fight inflation domestically, but it could be a boon for the U.S. as well. Economists say a stronger currency, known as the renminbi or yuan, would make Chinese goods more expensive in the United States and make American goods cheaper in China, according to the Times.

The U.S. would also see benefits if, as expected, other Asian nations followed China's lead.

For months, some members of Congress have been calling on the White House to lobby China to strengthen its currency. But administration officials wanted to avoid the impression that the U.S. was pressuring Beijing.