BEIJING - The valuation of the yuan and US arms sale to Taiwan will be on the agenda of the upcoming Asia-Pacific talks between China and the United States.

"Although the consultation is focused on Asia-Pacific affairs, sound and stable China-US ties are the foundation for our cooperation on these issues. Therefore, we will discuss relevant issues during our consultation," said Vice Foreign Minister Cui Tiankai at a press briefing on Monday afternoon regarding the second Asia-Pacific consultation.

He said a US Senate's Currency Exchange Rate Oversight Reform Act of 2011, which is targeted at China's so-called "currency manipulation," does not reflect the reality of the China-US trade relationship and will have a negative impact on the development of the relationship.

"If the bill becomes law, the only result will be a trade war between the two countries, which will be a lose-lose situation for both sides and will affect the comprehensive development of China-US ties," Cui said.

He called on the two countries to work with other countries in the region to promote the strong recovery of the world economy.

As for the US's arms package to Taiwan, Cui said that "putting the issue on the table" is the best way to avoid further damaging the development of bilateral relations.

"The arms sale severely harmed China's core interests, as well as China-US relations. It went against the trend of the peaceful development of cross-Straits relations and harmed the long-term interests of the United States itself. The US side should not repeat its mistakes," Cui said.

The minister said China welcomes an active and constructive role for the United States in the Asia-Pacific region and called on the country to join hands with regional nations to promote regional peace, stability, development and prosperity.

As for the South China Sea issue, Cui said it is not an issue between China and the United States, as the United States is not a claimant of rights and interests in the South China Sea.

"If the US side is interested in our opinion, we will brief them on our stance during the consultation," Cui said.

He also accused "forces with ulterior motives" of playing up the issue and provoking disputes between China and its neighbors.

"We have only maintained our consistent stance on this issue and have not taken any action to play up the issue or to provoke disputes. Most of our neighboring countries do not have this intention either," Cui said.

Tuesday's consultation will be co-chaired by Cui and US Assistant Secretary for East Asian and Pacific Affairs Kurt Campbell.

"The consultation aims to strengthen communication and coordination in order to cope with challenges in regional and international affairs," Cui said.

Cui said the differing opinions of China and the United States on international and regional issues are "fairly normal."

"That's why we need to strengthen consultation," Cui said.

The first Asia-Pacific consultation was held in Hawaii in June.

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