The US Treasury Secretary Henry Paulson says China is not moving fast enough to reform its currency, creating wider economic risks.

Paulson called for China to let the yuan appreciate more against the dollar to ease protectionist tendencies in Congress amid a persistent US trade deficit with China.

Congress could pass "unattractive bills," he warned, adding, "I think the Chinese are very well aware of it."

US firms have criticized China, saying it keeps the yuan artificially low to enhance exports.

Earlier in the week Chinese Prime Minister Wen Jiabao called for measures to prevent the country's fast growth from leading to an overheated economy.

Figures issued on Thursday showed that China's economy grew by 11.1% for the first three months of the year on an annual basis - more than expected - prompting fears of an interest rate rise.

US trade organizations have argued that by not letting the currency float freely, it gives Chinese firms an unfair edge on US companies, by making Chinese consumer goods artificially cheap.

China has a huge trade surplus largely thanks to a weak yuan that makes its products highly competitive abroad.

MRD/AVA