Tough trade talks with China
Next week's US-China trade summit may be more acromonyous than Treasury Secretary Henry Paulson had hoped for, according to the WAPO:
On the eve of high-level economic talks in Washington next week, Chinese leaders are increasingly bitter about what they see as bullying behavior by the United States on trade issues, potentially complicating efforts to tackle disputes on such matters as technology exports and intellectual property.
In the span of three months this year, under the pressure of domestic politics, the United States moved aggressively against China for trade violations, filing two lawsuits and imposing steep tariffs on imports. The actions have so incensed China that Vice Premier Wu Yi, the leader of its delegation to next week's talks, apparently considered boycotting them.
On the surface, the Chinese are likely to play the role of grateful guests. Friday, in a slight concession to American arguments, they loosened controls on the value of their currency, the yuan. The Chinese are expected to bring with them $4.3 billion in high-technology contracts for American products.
But Treasury Secretary Henry M. Paulson Jr., Federal Reserve Chairman Ben S. Bernanke and the heads of nine Cabinet-level agencies are sure to encounter a more combative China when they sit down at the table this time. The Chinese are so mad there had been talk Wu might stay home to show "dissatisfaction and anger," said Xu Mingqi, an international economics professor at the Shanghai Academy of Social Sciences, a government-affiliated think tank.
- Aaron Banks's blog
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