Paulson said there is agreement in principle between the
U.S.and on the need for greater yuan flexibility. The discussion is about "the pace" of change. China
"They're moving, but they're not moving, in my judgment, quickly enough," he said. "
is by far the largest" economy that doesn't have a market-determined currency, but enjoys the benefits of the global economy." China
"The American people are concerned, Congress is concerned and there's a lot of protectionist sentiment'' toward
China, Paulson said in an interview on the ``Charlie Rose'' show on PBS television following his speech in ." The more tangible reforms we see, the easier it is for me to deal with Congress.'' New York
"There will be some, I believe, unattractive bills that are voted on in Congress,'' Paulson acknowledged. "I think the Chinese are very well aware of this -- I think they should be aware of it.''
Other parts of the Bush Administration have also taken action by imposing import duties on Chinese glossy paper and by filing 2 complaints to the WTO for copyright infringement and piracy.
The feeling of uncertainty in Chinese and
Without steps to allow a significant increase in the yuan, which most economists consider unlikely, Paulson may not be able to continue holding off moves in Congress to punish
"After years of talk and bluster, protectionism no longer seems like an empty threat,'' says Stephen Roach, chief global economist at Morgan Stanley in
. "Trade sanctions against New York are now all but inevitable.'' China
These increasingly real threats come with the backing of Congressional democrats who maintain that they would achieve “strong and effective legislation is likely to pass with a veto-proof margin.”
Although it might seem that the appreciation of the yuan is all but unavoidable, Benjamin also shows the hidden side of the currency struggle, relating both US and Chinese workers and businesses.
Chinaallowed a small rise in the value of its currency in 2005, food-company executive Wang Yuzhou saw his profits squeezed. Any further move threatens the livelihoods of his 1,000 workers and the 5,000 rural households that supply his plants, he says. Hangzhou
John Walker says
China's currency policies have already cost 100 jobs at his Lewisburg, , die-casting company. He wants the U.S. Congress to do "whatever it takes'' to force an increase in an undervalued yuan that he contends gives an unfair advantage to Chinese competitors. Tennessee
Citizens on both side of the
But what can
At booth after booth at
’s main trade fair (Canton Fair) this week, the refrain from Chinese business executives is the same: the American market is not as crucial as it used to be. China
Instead, Chinese producers of everything from socket wrenches to sport utility vehicles say, their fastest growth these days lies in Europe, Africa, the Middle East, South America and elsewhere in Asia — in other words, practically anywhere other than the United States.
So it is throughout
. With ample support from the China Beijinggovernment — including a flurry of trade missions to Africa and assistance with trade fairs in Germany, or someplace in between — Chinese companies are poised to expand into the markets of many of the world’s rapidly growing economies. Australia
By placing the focus on new markets for the abundant amount of Chinese goods (produced in cities like Shenzhen), Chinese businesses are beginning to hedge their profit margins and risk.
The government and companies across
Chinaincreasingly see a danger in becoming too dependent on a single market ( ). So they are stepping up efforts to sell to other countries, particularly those outside the industrial world. USA
This change in direction is a small but important step for
On the other side: what would happen to the