No Concrete Result Expected from US-China Talk

Steven Bobson, Europe & Americas Editor
May 10, 2011 /

The Annual Strategic and Economic Dialogue between US and China this year in Washington DC, USA have started and there is no concrete result expected from it as the two economic powers seem to only hope to influence each other’s point of view, according a report from New York.

In the talk, US is likely judge issues about the yuan exchange rate and China’s human rights record while China is likely to protest about the American budget deficit statements and its protectionism policy.

On the first day of the two-day bilateral summit in Washington, US  Treasury Secretary Tim Geithner called for China to rely more on its own spending and less on exports, which in other words mean that it should make its economy more open market-based.

The reason for it is that China unfairly maintains a cheap currency to boost its exports and growth.

Chinese commerce minister Chen Deming, responded and said that America and other Western countries’ fears about the yuan are unfounded because China’s trade surplus continuously dropped over the past three years.

Aside from Geithner, US Vice-President Joe Biden and Secretary of State Hillary Clinton also criticised China’s clampdown on opposition activists, pointing out the recent numerous arrests of activists, journalists and critics by the Chinese government as an attempt by Beijing to prevent any Egyptian-style protest n their country.

On the other side, China also criticised the US for imposing restrictions on Chinese investment in their country by using the cloak of national security concerns as a reason.

Given the arguments, the two powers seem to be in disagreement but in his opening address, Geithner said the reform needs of both were not in conflict.

Sixteen US government agencies and twenty representatives of the Chinese government departments were present in the said summit.

 

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