–Seek ‘Things That Make a Difference’ on China, Talking Not the Problem
–Sen. Schumer: ‘What Is The Administration Afraid Of?’
–Sen. Schumer: Divisions Within China on Currency Policy
By John Shaw
WASHINGTON (MNI) – Treasury Secretary Tim Geithner said Thursday
that there would be little to gain by designating China as a currency
manipulator, adding that this finding would only mandate bilateral talks
that are already underway.
In testimony before the Senate Banking Committee, Geithner said
that a finding that only mandates more talks with China is not an
effective response to China’s currency policy.
“We’ve been talking a lot. Talking is not our problem,” Geithner
said, adding that he is looking for “things that make a difference.”
Geithner said he sees sharp differences within the Chinese
government between those who are “adamantly opposed” to currency reform
and those who believe it is “absolutely essential.”
The Treasury secretary said there is little dispute on China’s
currency policy: “The currency is undervalued. They are intervening to
keep it down.”
But an effective American policy on China’s currency must be
consistent with the nation’s international obligations and also bring
about more benefits than risks for the U.S., he said.
Sen. Chuck Schumer, a leading Democrat proponent of currency
legislation, blasted the Obama administration’s handling of China.
“What is the administration afraid of?,” he asked Geithner. China
is engaged in “overt and continuous” currency manipulation and “nobody
does anything about it.”
Schumer called the tepid responses of a number of U.S.
administration’s to this problem a “Bad Chinese Currency Groundhog Day
Movie.”
** Market News International Washington Bureau: (202) 371-2121 **
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