Japan Kan: May discuss yuan with China this weekend

TOKYO (Reuters) - Japanese Finance Minister Naoto Kan said on Tuesday that he may discuss the yuan when he meets Chinese officials in Beijing this weekend for regular talks, amid international pressure for China to let its currency strengthen.

Kan, who is also deputy prime minister, added that he would meet Premier Wen Jiabao during his visit.

The Group of Seven leading nations has pressured China to revalue its currency, which some economists say it keeps artificially low, giving it an unfair export advantage and hindering more balanced economic growth.

Asked if the yuan would come up at the meeting, Kan said:

"I have not yet decided what to do at this point, but we may discuss this topic depending on the course of dialogue."

"The Chinese government is concerned about this issue particularly in their relations with the United States," Kan added.

"Each country carefully made remarks at the last G7 meeting and I'm fully aware of the importance of this issue ... But I won't comment on what I may say in advance."

Analysts say China's increasing regional influence is expected to keep Asian governments from pressuring the world's fastest growing economy into letting its currency strengthen for fear of economic or political repercussions.

Beijing's currency controls have been a major cause of friction between the U.S. and China. A bipartisan group of U.S. Senators has proposed legislation that could lead to tariffs on Chinese exports if Beijing doesn't revalue.

Kan's meeting in Beijing on Saturday is the third in a series of bilateral talks aimed at deepening financial dialogue between Asia's two major economic powers.

Kan told a news conference after a cabinet meeting that the two sides would exchange views on regional and global economies and how they will collaborate to promote their economies and growth strategies.

(Reporting by Tetsushi Kajimoto; Editing by Hugh Lawson)

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