The Obama administration backed away from a confrontation with China after Treasury Secretary Tim Geithner said during confirmation hearings that “President Obama — backed by the conclusions of a broad range of economists — believes that China is manipulating its currency.”
China immediately hit back, denying that it manipulated its currency to get an unfair trade advantage. Within days, Vice President Joe Biden said on television: “There's been no judgment based in the administration that there has been a manipulation.” That word, he explained, “triggers within trade agreements certain responses.”
And President Obama himself telephoned Hu Jintao to give his Chinese counterpart further reassurances. Obama has received much advice on the importance of China, including making that country the destination of his first foreign trip, but he has rejected it, deciding instead to visit Canada instead. Even where telephone calls are concerned, he followed tradition by first calling Japanese Prime Minister Taro Aso before calling President Hu.
According to the White House, in the telephone conversation the two leaders pledged to “build a more positive and constructive U.S.-China relationship.” They discussed a wide range of issues, including global trade imbalances, and agreed to work together to stimulate economic growth and to smooth credit flows. They agreed to meet in April in London for summit talks on the economic crisis. Other issues discussed include the North Korean nuclear weapons program as well as Iran, Afghanistan and Pakistan, counter-terrorism and climate change.
FULL ARTICLE
04 February 2009
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