Wednesday, February 09, 2011

China to be pressured by US and Brazil over yuan

During his trip to Brazil on Monday, US Treasury Secretary Timothy Geithner appealed to government officials of the Latin American country to pressure China for a stronger currency, in a report by The Wall Street Journal.
Geithner's one-day trip to South America's economic giant as advance party to Pres. Obama's state visit in March, is a sign of the country's increasing economic influence that the US sees a "useful tool in aligning global economic interests."
Although no details were given, an unidentified source said that both countries will call for Beijing to appreciate its currency in a forthcoming meeting of the G20 nations.
They believe that a weak yuan results to unfair competition in world trade due to artificially cheap prices of China's exports.
The report also says that Brazil finds it dificult to compete with the products from China in home country and abroad.
This bold step to ally with the US to call for a stronger Chinese currency is a major departure from Pres. Dilma Rousseff's predecessor.
The Brazilian president will pressure Beijing during her trip to the capital in April.
Author's note: If it was the US who "invented" globalization, how come they are blaming China for the game that they themselves created?

No comments:

Post a Comment