Sitting across the negotiating table with China’s leaders are representatives of 16 agencies under the U.S. government. The parties will conduct dozens of discussions over two days around the U.S. – China. This event is part of an annual program of dialogue and economic strategies between the two countries and took place just 4 months after a bilateral meeting between Obama and Chinese President Hu Jintao.
According to analysts, this meeting is an opportunity for both U.S. and China sought to influence each other’s views, rather than an opportunity to seek a common voice. BBC identified the U.S. will continue to set the story yuan exchange rate to the negotiating table, while their Asian counterparts want to guide the discussion to the issue of budget deficits of the Obama administration.
One of the agencies have a large impact on the U.S. economy as the U.S. Chamber of Commerce said it will bring conversation to the deep concerns around the business environment in China. “Doing business in China is now far more difficult than five years ago,” Vice President of the United States Chamber of Commerce said Myron Brilliant.
Meanwhile, according to Commerce Minister Gary Locke, U.S. companies operating in China often limited investment or forced transfer of technology if you want a market share of more than a billion people. In addition, U.S. officials also said that China has created too much incentive for local businesses, making the playing field for foreign companies on a more narrow. Similarly, the Chinese side also said that their businesses are very difficult to invest in the U.S. because of strict limits on security issues.
At a meeting held within two days, U.S. Treasury Secretary Timothy Geithner and Chinese Vice Premier Wang Qishan will co-chaired the discussions on the economy. Meanwhile, Clinton and the National Commissioner for the National Chinese troop will host discussions on strategic cooperation.
Geithner said he will continue to insist on policy issues for the exchange rate of Chinese yuan, which is a long debate between the two sides. Meanwhile, according to Chinese Vice Minister of Finance Lee Chu, two countries have achieved initial uniform adjusted rate trends. However, the contradiction lies in the degree of adjustment.
According to BBC, the U.S. lawmakers believe the yuan being undervalued by about 15-40% more than the actual value. Meanwhile, from June 2010 to now, Chinese officials to coin this new price increase of about 5%.
For its part, China will likely continue to criticize the debt management policy and the exchange rate of U.S. dollars. China is now America’s largest creditors, and it absolutely right to worry about the budget deficit this year of “debtor” could reach 1,400 billion U.S. dollars while the dollar value on the downturn.