Secretary Geithner Due For Currency Talks In Beijing
April 12, 2010 by Special To Personal Liberty
As the dispute continues between the United States and China over the latter’s alleged attempts to keep its currency undervalued, Treasury Secretary Timothy Geithner will visit Beijing April 8 for talks with the Chinese vice premier for economic affairs.
Although details of the talks have not been released, media reports suggests the meeting with Wang Qishan will focus on settling the currency dispute, which has threatened to overshadow economic cooperation between the two countries.
The U.S. government has complained that the artificially low exchange rate is giving China’s exporters an unfair advantage and has led a huge trade surplus with the U.S. In fact, some lawmakers have called for the imposition of punitive tariffs on Chinese imports, if Beijing fails to make the yuan more flexible.
However, not everyone is happy with the administration’s approach. For example, the National Inflation Association (NIA) recently said that America should not "upset" China, since the domestic consumption has been made possible by China’s weak currency that has artificially boosted the dollar’s value. NIA experts have expressed their fear that the appreciation of the yuan would lead to a hyperinflation in the U.S.
"It’s absurd for Congress to say they are going to penalize China, when China has the power to make the U.S. dollar collapse overnight," NIA has said.