Geithner Sees China As Source Of Strength

--China's economy had been growing too fast, Geithner said
--U.S. wants China's yuan to appreciate further
--U.S. economy is getting stronger, Geithner said

WASHINGTON -- U.S. Treasury Secretary Timothy Geithner Wednesday said he expects China to be a source of strength for the world economy even as the country's rate of growth is slowing.

China's economy "is slowing to a more-sustainable pace. They were growing faster than they could sustain over time," Geithner said on Fox Business. "It looks to most people now, I think, from the outside that they have been able to slow it to a more-sustainable level and that will ultimately be good for us."

Chinese Premier Wen Jiabao last month reduced his country's growth target to 7.5% from the 8% annual target he has used since 2005. That sparked concerns that slower growth in China could hurt other economies.

Geithner also said he would like China to take more action on U.S. concerns regarding its currency; the U.S. has argued that the yuan should be allowed to appreciate further--intellectual property, subsidies and other economic matters.

"I would say that the Chinese are moving to try to be more responsive to our concerns," Geithner said.

Elsewhere, the Treasury secretary said the U.S. economy is gradually improving, though risks remain.

"Even though it's a tough economy--a lot of tough challenges ahead--we are really getting stronger, and there's a lot of strength here too," Geithner said.

Geithner highlighted Europe's financial crisis, tensions surrounding Iran that are causing higher oil prices, and potential deadlock in U.S. politics as the biggest threats to the recovery.