* OCTOBER 24, 2010, 5:11 A.M. ET
Geithner in China for Currency Talks
Associated Press
BEIJING—U.S. Treasury Secretary Timothy Geithner held talks with a top Chinese finance official Sunday amid currency tensions after a weekend pledge by finance leaders to rebalance the global economy.
The governments released no details but said Mr. Geithner and Vice Premier Wang Qishan "exchanged views on U.S.-China economic relations" during the meeting in the eastern city of Qingdao. They said the two also discussed preparations for a Nov. 11-12 meeting of leaders of the Group of 20 major economies.
Washington accuses Beijing of inflating its trade surplus by holding down the value of its currency, the yuan—a strategy that G-20 finance officials meeting in Gyeongju, South Korea, pledged Saturday to avoid. Some American lawmakers are pushing for punitive action against Chinese products if Beijing fails to let the yuan rise faster.
"Countries with significantly undervalued exchange rates committed to move towards more market-determined exchange-rate systems that reflect economic fundamentals, as China is now doing," Mr. Geithner told reporters Saturday.
Beijing promised a more flexible exchange rate in June but the yuan rose by only about 2% against the dollar in the following three months. Its appreciation has speeded up since the U.S. House of Representatives passed a bill on Sept. 30 that would allow Washington to sanction countries that manipulate their currency for trade gain. The Senate is due to take up the measure after November elections.
The G-20 finance ministers and central bankers promised to avoid debilitating currency devaluations and reduce trade and financial imbalances and to give China and other major developing countries a bigger role in managing the global economy.
"If we're going to be able to continue to expand opportunities for trade and preserve an open trading system, then we need to work to achieve more balance in the pattern of global growth," Mr. Geithner said Saturday.
http://online.wsj.com/article/SB10001424052702304915104575571660980001290.html?KEYWORDS=china
Geithner in China for Currency Talks
Associated Press
BEIJING—U.S. Treasury Secretary Timothy Geithner held talks with a top Chinese finance official Sunday amid currency tensions after a weekend pledge by finance leaders to rebalance the global economy.
The governments released no details but said Mr. Geithner and Vice Premier Wang Qishan "exchanged views on U.S.-China economic relations" during the meeting in the eastern city of Qingdao. They said the two also discussed preparations for a Nov. 11-12 meeting of leaders of the Group of 20 major economies.
Washington accuses Beijing of inflating its trade surplus by holding down the value of its currency, the yuan—a strategy that G-20 finance officials meeting in Gyeongju, South Korea, pledged Saturday to avoid. Some American lawmakers are pushing for punitive action against Chinese products if Beijing fails to let the yuan rise faster.
"Countries with significantly undervalued exchange rates committed to move towards more market-determined exchange-rate systems that reflect economic fundamentals, as China is now doing," Mr. Geithner told reporters Saturday.
Beijing promised a more flexible exchange rate in June but the yuan rose by only about 2% against the dollar in the following three months. Its appreciation has speeded up since the U.S. House of Representatives passed a bill on Sept. 30 that would allow Washington to sanction countries that manipulate their currency for trade gain. The Senate is due to take up the measure after November elections.
The G-20 finance ministers and central bankers promised to avoid debilitating currency devaluations and reduce trade and financial imbalances and to give China and other major developing countries a bigger role in managing the global economy.
"If we're going to be able to continue to expand opportunities for trade and preserve an open trading system, then we need to work to achieve more balance in the pattern of global growth," Mr. Geithner said Saturday.
http://online.wsj.com/article/SB10001424052702304915104575571660980001290.html?KEYWORDS=china