The US Treasury Secretary is traveling to China to discuss whether or not China will consider letting the curency appreciate. This meeting with Chinese Vice Premier Wang Qishan will be held in Beijing, and will be closed to the press. Geithner is being pressured from Congress to label China as a 'currency manipulator' for keeping the value of the yuan lower than its real value, giving China the upper hand in US trades. Geithner stated that there will be several more meetings with officials of China over the next three months. The Chinese President Hu Jintao plans to visit Washington some time next week to talk with President Obama concerning this issue. One of the main issues concerning whether or not China will let the yuan appreciate is the current instability of the global economy. Premier Wen Jiabo does not want his country's currency to be able to fall or rise according to the international economy. However, Geithner remains optomistic, stating that, "They're becoming more open to the world, and with that, you're going to see the currency take on a broader role internationally".
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sounds fishy...
ReplyDeleteThe U.S. is under great pressure to make this happen and if they do not succeed then it could be considered a major failure by the White House. And althogh China has thrown itself into the global economy I don't think that it's quite ready to go all the way.
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