Gutierrez underscores strategic trust in Sino-U.S. ties (2)

He said he believes that China has a plan for reforming the exchange rate mechanism and will execute the plan when the time is right, adding that the United States should trust China.

"If the United States makes it a central issue, I believe it could have unintended consequences," said Gutierrez. "We would like to see China's currency become fully convertible, its value to be market-based and market-driven, but that will come at the right time."

He also rejected concerns that U.S. efforts to revitalize its manufacturing industry will cause a retreat of investment and jobs from China back to the United States, saying the move will not create too much competition between the two.

The revitalization of the manufacturing industry in the United States will be reflected mainly in new products, new technologies and new innovation and will not dramatically change the service-dominated structure of the U.S. economy, Gutierrez explained.

He expressed optimism for the medium-term prospects of a bilateral free trade agreement (FTA) between China and the United States.

"I think the important thing is that two years ago no one was talking about an FTA, and now there's a lot of discussion about when China and the United States can do an FTA," he said.

He said a bilateral investment treaty that is currently being negotiated by the two countries is a foundation for an FTA.

The topic is expected to be discussed, though perhaps not at length, during the upcoming meeting between Xi and Obama, Gutierrez said.

The meeting is scheduled for June 7 and 8 in Rancho Mirage, California.