China sticks to guns on global balancing

Published: November 14, 2010
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US President Barack Obama speaks during the Apec CEO Summit 2010 in Yokohama, south of Tokyo. PHOTO AFP

US President Barack Obama speaks during the Apec CEO Summit 2010 in Yokohama, south of Tokyo. PHOTO AFP

YOKOHAMA/JAPAN: Beijing and Washington returned to their position on trade and currency at the Asia-Pacific Economic Cooperation (Apec) summit on Saturday as cracks that were being papered over by the G20 summit resurfaced.

US President Barack Obama warned countries such as China against relying too heavily on exports for growth and Chinese President Hu Jintao reiterated Beijing’s commitment to a gradual reform of its exchange rate regime.

“One of the important lessons the economic crisis taught us is the limits of depending primarily on American consumers and Asian exports to drive economic growth,” Obama told a forum of Asia-Pacific business leaders.

“Going forward, no nation should assume that their path to prosperity is simply paved with exports to America,” he said on the final leg of a 10-day tour that has also taken him to India, Indonesia and South Korea.

The United States and China both blame each other for doing more damage to international trade. Washington contends that the Yuan is undervalued; giving it an export advantage. Beijing argues the US Federal Reserve’s easy-money policy is aimed at weakening the dollar to boost exports.

Hu, taking the podium shortly after Obama, told business executives China wanted to expand domestic demand growth, and remained committed to reforming its exchange rate, “on the basis of retaining initiative, controllability and gradualness”.

Obama’s national security adviser, Tom Donilon, later told a news briefing that China needed to show progress on reforming the exchange rate by the time Hu visits Washington in January.

“President Hu Jintao’s visit in January would be an important time to look at exactly what the quantum of progress has been on this,” Donilon said.

Obama and Hu joined other leaders of Apec for a weekend summit that focuses on policies to ensure balanced growth and take concrete steps toward the setting up of a vast free-trade area in the world’s fastest-growing economic region.

Published in The Express Tribune, November 14th, 2010.

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Reader Comments (2)

  • Ben
    Nov 14, 2010 - 7:27PM

    China has decided to strike another balance. A balance to correct the issues left by Obama’s visit to India. But is it a direct outcome of Zardari’s charming personality? Please read more at: link textRecommend

  • Footnotes
    Nov 15, 2010 - 1:16PM

    US should stop preaching and look into its own house. Same goes for UK, Cameron and Obama should stop promoting democracy, the way they define it.

    The ending of US supremacy is on the horizon, and what ever is left of UK , Cameron will make sure he completes the damage to the UK economy and the students.Recommend

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