U.S. President Barak Obama pushes China to act like a grown up on trade and currency issues

U.S. President Barak Obama pushes China to act like a grown up on trade and currency issues

During a news conference at the annual Asia-Pacific Economic Corporation forum, the US president Barak Obama hard-pressed China to act more like a grown up economy on currency and trade issues.

A day after the face to face conversation with the Chinese president Hu Jinto, Obama addressed the issue that China’s practice of gaming the international economic system is hurting US Companies. The American president suggested that as China is now one
of the biggest world economies, they need to create a level playing field not only for United States but also for other foreign business.

In a statement during a news conference, Obama said,” China needs to understand that their role is different now than it might have been 20 years ago or 30 years ago when if they were breaking some rules it didn’t really matter, it didn’t have a significant
impact. Now they have grown up. They are going to have to help manage this process in a responsible way.”

The two largest economies of the world U.S. and China often exchange blows on the trade and currency issues. Recently, the American senate passed a legislation to push Beijing to let its Yuan and the Renminbi currency to rise speedily in value as most economists
think that renminbi is devalued which affects the U.S. trade.

“Most economists estimate that the renminbi is devalued by 20 to 25 per cent. That means our exports to China are those more expensive and their imports into the United States are that much cheaper,” Barak Obama said.

Despite of U.S. president’s blunt news conference, no immediate reply came from the Chinese government or any of their officials. China has a history of shrugging off US demands in the past whenever theses kinds of issues were addressed by their presidents.

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Posted by Sohaib Anwar on Nov 14 2011. Filed under Business, Latest News, USA, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry