President Hu Jintao says that China would firmly stick to reforming its currency exchange rate, based on its own economic and social development needs. He made the remarks on Monday in a meeting with U.S. President Barack Obama on the sidelines of a Nuclear Security Summit in Washington.

Chinese President Hu Jintao (L) meets with U.S. President Barack Obama in Washington April 12, 2010.

President Hu Jintao said reforms on the yuan's exchange rate would be based on the global economic situation, as well as China's economic conditions. He told U.S. President Barack Obama that the appreciation of the yuan would neither balance bilateral trade nor solve the US unemployment problem.

Obama said that his country respects China's sovereignty, concerning the yuan's exchange rate. He said he hoped the two sides could find a solution through dialogue and cooperation.

President Hu Jintao said his country does not intentionally pursue a trade surplus with the United States.

He said China would seek additional measures to increase imports from the US. President Hu urged Washington to loosen its export controls over high-tech products, to allow US companies to boost their exports to China.

He also expressed hope that trade frictions between the two countries will be solved through negotiations.

US President Obama said Washington is willing to work with China to build even stronger ties through various platforms including the Strategic and Economic Dialogue and the Group of 20 summits.