. | . |
US to warn China against export-led growth Washington (AFP) July 23, 2009 The United States will press China in high-level talks next week to reduce its dependence on exports as a source of economic growth, US officials said Thursday. President Barack Obama's administration will tell top-level Chinese officials at the Strategic and Economic Dialogue in Washington that the role of consumption as a major driver of the US economy is diminishing. "There's been a fundamental change in the US economy," a senior administration official said, speaking on condition of anonymity at a briefing on the two-day talks to open Monday. The US economy, which is grappling with a brutal recession that began in December 2007, will recover, the official said, but the recovery "is going to be a different type of recovery." "US households are raising their savings rates, so this is going to a less consumption-led recovery than what they're used to," he said. "And our message to the Chinese is going to be: If you want to achieve your growth objectives, you're going to have to find a different way of doing it than through export-led growth," he said. The official said that US officials will discuss what China needs to do to restructure, saying China is making progress but "not fast enough, not intense enough" in transforming its economic model away from dependence on exports and capital- and resource-intensive heavy industry. "It's not as simple as putting in place a stimulus bridging over a couple of years until you get back to the old days where you can export into a consumption boom in the US and other parts of the global economy," the official added. The ballooning US trade gap with China, the country's second-largest trading partner, swelled to an all-time high of 266.3 billion dollars in 2008. US critics accuse Beijing of keeping its yuan currency artificially low to gain a trade advantage. Obama and Chinese President Hu Jintao said they would launch the Strategic and Economic Dialogue at the Group of 20 London summit in April as a way of strengthening relationships between the two countries. Obama will address the opening Monday of the discussions, the first such bilateral high-level talks since he took office in January. The two-track talks -- economic and strategic -- are a broader extension of economic talks started under the previous US administration of George W. Bush. Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner will be joined by their respective Chinese co-chairs, State Councillor Dai Bingguo and Vice Premier Wang Qishan. Share This Article With Planet Earth
Related Links Global Trade News
China news blackout on graft case linked to president's son Beijing (AFP) July 23, 2009 China's Internet censors blocked news Thursday about a graft probe in Namibia involving a firm linked to the son of President Hu Jintao, as the state-run media ignored the sensitive issue. Two Namibians and a Chinese national were arrested last week in Namibia as part of a probe into bribery allegations involving Nuctech, a company headed until last year by Hu's 38-year-old son, Hu Haifeng. ... read more |
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2009 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |