Talks between the United States and China are going to focus on the global economy, economic policy and the ill-at-ease feeling Beijing has about holding U.S. bonds. David Pierson and Don Lee for The Los Angeles Times reports that Washington’s desire to reduce China’s reliance on exports and the need for both sides to reach consensus on tackling climate change will also be tackled.
Steve Chiotakis for Marketplace reports that Secretary of State Hillary Rodham Clinton and Treasury Secretary Timothy F. Geithner co-chaired the two day talks. Other major topics include:
- Major overhaul within environmental policy
- Beijing’s economic reform to focus on domestic consumption, rather than exports
- The U.S. economy and stimulus plan must make progress, as China is deeply concerned about bonds and financing
- The strength of the U.S. dollar bears weight upon China’s record $801.5-billion holdings in U.S. Treasuries
Ultimately, China may find the talks reassuring. President Barack Obama told officials that the dollar is sound, their investments are secure and that the United States is working feverishly to fix its economy. Obama stressed the need for cooperation between countries. If his words have an impact, a mutually beneficial future may be in order.
- iShares FTSE/Xinhua China 25 Index (FXI): up 47.9% year-to-date
- PowerShares Golden Dragon Halter USX China (PGJ): up 57.7% year-to-date
For more stories about china, visit our China category.
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