Yuan key issue for US treasury secretary, says media

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Yuan key issue for US treasury secretary, says media

Source:Globaltimes.cn Published: 2013-3-19 17:07:00

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Xi urges joint efforts to advance China-US relations
Chinese President Xi Jinping said on March 19 that China is ready to work with the United States to advance cooperative partnership between the two countries.

US treasury secretary tests waters during Beijing visit
US Treasury Secretary Jacob Lew will hold talks with China's new leadership in Beijing on March 19-20, on his first overseas visit since taking office, which analysts say underlines the importance of China to the US in terms of trade ties.

US Treasury Secretary to visit China
US Treasury Secretary to visit China on economic talks

Background:

The visit came three weeks after the new Treasury Secretary's swearing-in and just days after Beijing completed a leadership transition and saw a reshuffle of its cabinet.

Following the cabinet reshuffle, the Chinese government's economic team saw many newcomers assume office, including the new premier and vice premiers, as well as finance and commerce ministers.

Focuses:

●Opportunities for US workers and businesses and leveling the playing field between the world's two biggest economies
●Cyber attacks
●China's policies on the value of yuan
●Intellectual property rights

Source: Agencies

Comments

Chinese Media:

●Global Times
He Weiwen, co-director of the China-US-EU Study Center under the China Association of International Trade
"The Obama administration is eager to learn the new Chinese leadership's policy inclinations on Sino-US economic ties, and reinforce cooperation with the new economic team," He said, adding that the US may want to seize the opportunity to take part in and shape the reform process of China under its new leadership.

Zha Xiaogang, a researcher with the Shanghai Institute for International Studies
Lew also wants to make sure that China's policies on the value of yuan and trade would not stand in the way of the US economic recovery.

"The two sides would prefer to build a friendly relationship from the beginning, and no party wants conflicts at this stage," Zha said. "So they will tone down the disputes in public, though each will stick to its bottom line behind closed doors."

●The Xinhua News Agency
The extraordinary timing of the visit underscores the importance both China and the United States have put on their economic relationship, a significant part of their overall relations.

China's economic transition is a bonus to American businesses, an opportunity the United States cannot afford to miss in order to revive its economy and add jobs.

Like Lew’s many predecessors, he would probably repeat US concerns to Beijing on the currency issue.

●Economic Information Daily (EID)
The EID argues that Lew needs to foster ties with Chinese officials in order to build a familiar relationship with the country as a whole. But, it says Lew must be cautious when addressing issues such as cyber attacks, exchange rates and China’s deepening market reform. Another task ahead is to foster equality in Sino-US trade ties by clarifying the US position, because China, like other countries, is unclear about the meaning of Washington’s “financial cliff,” “automatic spending cuts,” and "debt ceiling."

●cnr.cn
Wu Xiaoqiu, director of the Financial and Securities Institute (FSI) at Renmin University of China
The biggest issue for the US is currency appreciation. The new US treasury secretary may ask whether the yuan is undervalued, because any appreciation will stimulate economic development in the US, cut unemployment and help the manufacturing sector. Lew may also ask when the yuan will become a fully convertible currency.

Foreign Media:

●Forbes
Now Mr Lew looks set to repeat President Obama’s early first-term approach. The new Treasury boss, by making Beijing his first international destination, is feeding his hosts’ already inflated sense of self-importance. That’s Lew’s first big mistake in his new position, a miscue bound to make conversations with the Chinese even more difficult.

●The Wall Street Journal
Mr Lew's meetings in Beijing aren't expected to lead to major policy breakthroughs, but the US delegation will be under pressure to raise numerous prickly issues of top concern to the Obama administration, US businesses and US unions.

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