seoul u.s. treasury secretary jack lew say friday china would see bad consequences economy bilateral u.s. relations back away state goals open market rebalance economy toward consumer-led growth lew interview reuters seoul say would keep pressure chinese officials talk beijing next week stick reform commitments execute pledge reduce excess industrial capacity distort world market china face diminish economic prospect medium long term fail continue reform lew say frankly china take time-out step back reform agenda bad consequences china economy flow good term bilateral economic relations lew say u.s.-china strategic economic dialogue meet june 6-7 beijing come time increase trade tensions world two large economies u.s. commerce department recently impose steep anti-dumping anti-subsidy duties wide-range chinese steel products u.s. business group complain new chinese regulations say favor local firm meanwhile chinese yuan plumb five-year low dollar raise concern potential another devaluation federal reserve prepare resume interest rate increase pause past months lew say china largely keep g20 commitments avoid competitive currency devaluations add action recent months spend reserve support yuan also know renminbi rmb consistent commitments china intervention last year devalue largely support rmb lew say think test whether china move decisively orderly way market-oriented exchange rate whether will tolerate movement directions likewise lew say south korea also need resist temptations intervene currency market upward pressure say seoul refrain active interventions past six nine months make clear recognize also say durable policy policy withstand pressure market go directions say say south korea interest join trans-pacific partnership free trade bloc assume deal ratify would provide incentive improve exchange rate policy currency side-agreement tpp would require transparency interventions commitments avoid interventions gain trade advantage u.s.-china economic foreign policy talk beijing also provide forum air u.s. business group concern regulations china say favor domestic firm example foreign insurers raise concern new cyber security regulations require secure controllable information technology whether anti-monopoly law national security law either design implement way design create undue burden foreign competition problematic lew say lew say important next u.s. president continue strategic economic dialogue otherwise dispute may discuss bilateral basis separate meet friday south korean finance minister yoo il-ho lew say coordinate global action need increase pressure north korea drop pursuit nuclear weapons senior treasury official say would require additional action china adhere new sanction aim cut north korea international financial system change behavior treasury 's lew china pause reform would 'very bad consequences