This Senate Finance Committee hearing set for Wednesday ,”The U.S. – China Trade Relationship: Finding a New Path Forward is timely given China’s announcement on Saturday that it was going to allow its currency to rise. The only two witnesses listed so far are Commerce Secretary Gary Locke and U.S. Trade Representative Ron Kirk.

China’s announcement certainly shook things up. On Friday, this was AFP’s lead: “OTTAWA (AFP) – – China’s controversial currency policy will be discussed at an upcoming G20 summit, a Canadian official said Friday, despite an earlier warning by Beijing not to bring up the yuan issue.”

On Sunday, AFP’s report was, “Chinese yuan under scrutiny before G20 meeting“:

BEIJING/WASHINGTON – Policymakers in the world’s major economies will closely monitor the Chinese yuan this week for signs it is actually moving after Beijing announced it would make its exchange rate more flexible.

The Group of 20 nations will meet in Canada next weekend to hash out a course for the future as the world gradually emerges from the worst financial crisis since the 1930s.

China is a member of the G20, which holds its semi-annual meeting starting Saturday in Toronto, but is NOT a member of the G8, which precedes the meeting with sessions at Muskoka in Ontario’s cottage country .

News accounts, reaction:

• AP, China lets yuan float, warns move won’t fix global economy
• Reuters, Germany welcomes Chinese move on yuan flexibility
• Channel News Asia, “No major yuan revaluation despite China’s currency reform pledge: analysts“
• Economic Times, “Renminbi appreciation won’t benefit India: Lewis Wan” (Wan is Chief Investment Officer, The Pride Group)
• Reuters, “Chinese yuan under scrutiny before G20 meeting“

Los Angeles Times, “In China, Obama’s hosts show no signs of budging“:

Not only is the U.S. president coming away without any definable concessions, but the Chinese appeared to be digging in their heels.

On Tuesday, just hours after Obama stood with President Hu Jintao in the Great Hall of the People, praising China’s commitment to “move toward a more market-oriented exchange rate over time,” a senior Chinese official called a news conference across town to issue a rebuttal.

“We maintained a stable yuan during the financial crisis, which not only helped the global economy but also the stability of the world’s financial markets,” He Yafei, deputy foreign minister, said, adding that it was too soon since the worldwide financial crisis to talk about a change of strategy.

• Christian Science Monitor, “Obama bids China farewell with Great Wall tour, modest expectations“
• Washington Post, “In Obama’s China trip, a stark contrast with the past“
• Dallas Morning News, “Obama, Chinese president low key in talks”