In a bid to reduce its trade deficit with China a team
of senior US government representatives will visit Beijing
in December to urge China to amend its economic policies.
as a strategic economic dialogue, the team, comprising
Ben Bernanke, chairman of the US Fed, Henry Paulson
treasury secretary and other senior members of the US
cabinet, to press for the yuan to be allowed to appreciate,
reduce barriers to foreign investment and take effective
measures to curb piracy and theft of intellectual property.
mission of the delegation has aroused interest because
it is extremely rare for the head of the Fed and the
treasury secretary to meet their counterparts together
on economic talks.
trade with the US has built up a record deficit for
the US, China has created a record surplus for its economy
its trade surplus with the rest of the world
hit a record $23.8 billion in October. Analysts have
forecast that China''s trade surplus will reach $160
billion from January to end December a 60 per
cent rise on 2005.
6 November, 2006, China''s foreign exchange reserves
struck $1 trillion amidst criticism that the
country keeps the value of it currency artificially
officials have said that it is in China''s interests
to seek better balance
in trade in order to manage such huge reserves. Paulson
has said that China needs to adopt policies that foster
more demand at home instead of relying so heavily on