Geithner praises progress at strategic talks
Source: Agencies |
May 5, 2012, Saturday
|
Print Edition
Print Edition
CHINA agreed yesterday to let foreigners own bigger stakes in its securities firms and promised to limit export subsidies after a two-day high-level dialogue with the United States ended in Beijing yesterday.
The Chinese government said it was implementing an earlier commitment to expand access to its auto insurance market and would allow greater foreign investment in Chinese stocks and bonds. It promised to pursue reforms of its exchange rate controls but gave no timeline.
During the annual China-US Strategic and Economic Dialogue, Chinese officials also agreed to raise the cap on foreign ownership of securities joint-ventures to 49 percent. That is above China's promise of 20 percent ownership as part of its World Trade Organization obligations.
The two governments said they would start negotiations this summer on limits to export credits.
"These important steps do not resolve all of our concerns, or China's, but they do represent progress that translates into greater opportunities for US workers and companies," said US Treasury Secretary Timothy Geithner.
For its part, the US promised to facilitate high-tech exports to China, responding to Beijing's complaints about restrictions on "dual-use" goods with possible military applications.
Chinese officials also announced plans to allow foreign and domestic auto financing companies to issue bonds regularly, a step that could give a boost to US automakers relying on China - the world's biggest auto market - for growth.
China said it had amended regulations to implement a previous commitment to allow foreign insurance companies to sell third-party auto insurance in the country.
Market-oriented
Geithner told President Hu Jintao yesterday that China's moves toward a more market-oriented exchange rate were "very promising" and said economic relations are improving despite occasional tensions.
Geithner met Hu along with US Secretary of State Hillary Clinton.
"We consider the broad direction of the economic reforms that you have laid out - to move to a more market-oriented exchange rate system, to expand consumption and domestic demand, to open up the Chinese economy further to foreign competition, to create a more modern financial sector - we think these are very promising reforms," Geithner told Hu.
China has allowed its yuan to strength gradually and in April widened the band in which the tightly controlled currency is allowed to trade each day.
In a speech last week, Geithner said that an undervalued yuan was a source of "unfair competition" and hurt foreign companies at a time when China's trading partners were trying to boost exports.
He called for a "stronger, more market-determined" exchange rate and said that would help the global economy.
Geithner told Hu that despite "inevitable tensions" in US-Chinese ties, "we are building a stronger economic relationship."
Hu said the annual talks had "achieved positive agreements."
Chinese envoys made a "clear, sustained commitment" to more exchange-rate reform at this week's talks, said a US official.
Chinese officials have said, however, that future gains in the yuan are likely to be limited.
Trade Minister Chen Deming said on Thursday that China's shrinking global trade surplus suggests the yuan is at an appropriate level.
The Chinese government said it was implementing an earlier commitment to expand access to its auto insurance market and would allow greater foreign investment in Chinese stocks and bonds. It promised to pursue reforms of its exchange rate controls but gave no timeline.
During the annual China-US Strategic and Economic Dialogue, Chinese officials also agreed to raise the cap on foreign ownership of securities joint-ventures to 49 percent. That is above China's promise of 20 percent ownership as part of its World Trade Organization obligations.
The two governments said they would start negotiations this summer on limits to export credits.
"These important steps do not resolve all of our concerns, or China's, but they do represent progress that translates into greater opportunities for US workers and companies," said US Treasury Secretary Timothy Geithner.
For its part, the US promised to facilitate high-tech exports to China, responding to Beijing's complaints about restrictions on "dual-use" goods with possible military applications.
Chinese officials also announced plans to allow foreign and domestic auto financing companies to issue bonds regularly, a step that could give a boost to US automakers relying on China - the world's biggest auto market - for growth.
China said it had amended regulations to implement a previous commitment to allow foreign insurance companies to sell third-party auto insurance in the country.
Market-oriented
Geithner told President Hu Jintao yesterday that China's moves toward a more market-oriented exchange rate were "very promising" and said economic relations are improving despite occasional tensions.
Geithner met Hu along with US Secretary of State Hillary Clinton.
"We consider the broad direction of the economic reforms that you have laid out - to move to a more market-oriented exchange rate system, to expand consumption and domestic demand, to open up the Chinese economy further to foreign competition, to create a more modern financial sector - we think these are very promising reforms," Geithner told Hu.
China has allowed its yuan to strength gradually and in April widened the band in which the tightly controlled currency is allowed to trade each day.
In a speech last week, Geithner said that an undervalued yuan was a source of "unfair competition" and hurt foreign companies at a time when China's trading partners were trying to boost exports.
He called for a "stronger, more market-determined" exchange rate and said that would help the global economy.
Geithner told Hu that despite "inevitable tensions" in US-Chinese ties, "we are building a stronger economic relationship."
Hu said the annual talks had "achieved positive agreements."
Chinese envoys made a "clear, sustained commitment" to more exchange-rate reform at this week's talks, said a US official.
Chinese officials have said, however, that future gains in the yuan are likely to be limited.
Trade Minister Chen Deming said on Thursday that China's shrinking global trade surplus suggests the yuan is at an appropriate level.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
