China tries to cool row over yuan with the U.S.

BEIJING (Reuters) - China said Friday it will send an official to the U.S. to try to ease trade friction, while its currency regime is being criticized, but warned that the threat of U.S. lawmakers could complicate the talks.

The conciliatory announcement and comments from the Ministry of Commerce of China seem to point to lower temperature in an increasingly bitter dispute, which has U.S. senators threatening to impose tariffs on Chinese goods if Beijing does not allow the yuan to rise from asset.

"The channels of communication between our sides are open. All issues of concern to each side can be discussed through these channels," said He Ning, chief North American division of the Ministry of Commerce, at a news conference.

But China gave no indication it is ready to abandon its commitment to a yuan exchange rate stable and the market's expectations of an appreciation remain silent.

Both I and other officials stressed that the United States remained a key market for Chinese goods, and Beijing wants to avoid the risk of a backlash.

"Send an official transmits a signal to Washington that China wants to talk about these problems and do not want to escalate this conflict," said Wang Yong, a Beijing University professor who studies the economic relations between China and the U.S..

China said Vice Minister of Commerce, Zhong Shan, visit the United States from 24 to 26 March to hold discussions focusing on "the Chinese-American trade balance and trade frictions."

But the demands of the U.S. Congress that Beijing raise the value of the yuan, which has remained at around 6.83 per dollar since the start of the global credit crisis in 2008, continue to hamper the dialogue, said He, the Ministry of Commerce.

"This whole situation made more complex by imposing an external disturbance in our normal communication channels. That's a trend we do not want to see," said He.

Beijing says the stability of its currency has benefited the global economic recovery. U.S. lawmakers say is an unfair subsidy to goods manufactured in China that "robbed" American jobs.

"I think the Chinese envoy (Zhong) establish the position of China, but also strive for a better understanding of the views in Washington and report back," said Professor Wang

Zhong, the sales representative would not be in a position to negotiate substantive decisions, the academic said.

"The fact is that it will take time for China to transform its mode of economic development, including its currency," said He.

Many in Congress want Beijing to revalue its yuan by 40 percent and say they have waited patiently for China to take measures on its own. The lawmakers said a revaluation is necessary to correct the massive trade flows that give an unfair competitive advantage to Chinese products.

China has kept the exchange rate around 6.83 yuan per dollar since the global credit crisis erupted in mid-2008, but Beijing says the stability of its currency has helped the global economic recovery.

A report of the Department semi-annual U.S. Treasury to be presented on April 15 could labeling China a "currency manipulator", adding pressure on Beijing, threatening to deepen the divide between the first and third world economy.

If China is formally declared a currency manipulator, the Treasury should quickly begin talks with Beijing, to raise the pressure for concessions, although U.S. law has an escape clause to prevent such action.

(Writing by Simon Rabinovitch)