16-member Chinese cabinet delegation in US for economic dialogue
22 May 2007
A cabinet level Chinese delegation has arrived in the US for two days of talks on trade and economic co-operation, dubbed ''strategic economic dialogue'', amid growing tension over trade between the two countries.
It is the second in a series of talks between China and the US. China regards the talks as being critical to its economic growth and the delegation comprises 16 members of the Chinese cabinet to allay growing anxiety in the US of its mounting trade deficit with China, which recorded $233 billion in 2006.
US lawmakers are particularly concerned about the exchange rate between the Chinese yuan and the US dollar, with some US Congressmen asking for the Chinese currency to be revalued by as much as 40 per cent.
Moreover, the US has a series of complaints outstanding against China at the World Trade Organisation (WTO), which will begin hearings on a case against Chinese imports barriers on car parts brought before it by the US, the EU and Canada.
US treasury secretary Henry Paulson, who visited China with the head of the US Federal Reserve Ben Bernanke in 2006, is accused of being too soft on China and having been a former chairman of Goldman Sachs, is now too concerned about the interests of Wall Street.
Paulson has warned that if negotiations failed, China could become the target of protectionist pressures during the forthcoming US presidential campaign.
However,
Chinese vice premier Wu Yi, who is heading the delegation
to the US, has warned the US against adopting protectionist
measures as being irresponsible.
