US to Help China Help US
Since he began his visit to China, Treasury Secretary John W. Snow has been pushing a set of reforms that the US believes China should enact to allow for more open markets. As can be expected the Chinese are not taking to well to this, since they see it as an American intrusion into their personal issues.
Snow's main issue is trying to get China to let market forces control the value of China's currency, the Yuan. By keeping the currency artificially pegged against the dollar China is able to ensure it continues to have the cheapest products in the market place to export.
While Snow is right in pushing for free market reform from the Chinese, who say they are a so called free market economy. We should not fool ourselves that they will do anything to change their current policy.
Why would they? They currently have the strongest and fastest growing economy in the world, and the rest of the world is so scared of the Chinese economic Dragon that they will concede any issue just to keep good trade terms with the PRC.
Snow's main issue is trying to get China to let market forces control the value of China's currency, the Yuan. By keeping the currency artificially pegged against the dollar China is able to ensure it continues to have the cheapest products in the market place to export.
While Snow is right in pushing for free market reform from the Chinese, who say they are a so called free market economy. We should not fool ourselves that they will do anything to change their current policy.
Why would they? They currently have the strongest and fastest growing economy in the world, and the rest of the world is so scared of the Chinese economic Dragon that they will concede any issue just to keep good trade terms with the PRC.
posted by Aleksandr at 6:12 PM
2 Comments:
I think Snow's real target is to make the yuan controllable by the US dollars and to make a pre-emptive strike before China decide to peg euro instead of dollar.
USA's invasion in Iraq started when Iraq had a thought on making the majority of its devisa in the form of euro
Conspirousy theories aside, since I don't read the NYTimes, I went looking for some similar articals and found
http://hongkong.usconsulate.gov/uscn/others/2005/062301.htm
which is likely the main source for the NYTimes artical. Also, Bloomberg news has an artial
http://www.bloomberg.com/apps/news?pid=10000101&sid=argF.aWsyyRE&refer=japan
If that second link doesn't work, I used "Treasury Secretary" and "open markets" and "china" to do my GoogleNews search.
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