“It’s important for China to stick to its reform agenda”. “Regardless of when the Fed moves, both China and the United States have an interest in seeing a relatively stable exchange rate for the yuan”.
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The US and China are making good progress on talks regarding US dollar to yuan exchange-rate, according to US Treasury Secretary Jacob J. Lew in Beijing.
Lew said he hoped talks between US and Chinese officials on excess industrial capacity would be as fruitful as those on currency policy.
The last time the two sides exchanged their negative list offers was in early September a year ago, days ahead of Chinese President Xi Jinping’s state visit to the United States.
“The most important outcome of the S&ED may well be avoidance of policy mistakes, a subtle outcome that will not be reflected in headlines”, Dollar said.
“We should enhance the mutual trust between our two countries”, Xi said in Beijing, as quoted by the South China Morning Post.
“Some disputes may not be resolved for the time being”, he said, but both sides should take a “pragmatic and constructive” attitude towards those issues.
The U.S. agenda includes pressing Beijing to move faster with plans to reduce excess production capacity that its trading partners complain is driving a flood of low-priced steel into their markets, threatening thousands of jobs. The US has responded by imposing anti-dumping tariffs on steel, and European Union officials say they are investigating what, if any, action to take.
USA trade experts have also warned that resorting to protectionism will not cure the US steel industry’s grave ills, and import restrictions serve to harm the overall US economy rather than help it.
“Excess capacity is not just a domestic issue in China”, Lew said at Tsinghua University.
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But he said that the U.S. Treasury did not designate China as a currency manipulator in its most recent currency report because its most recent currency intervention had not been one-sided. -China bilateral investment treaty, vice premier Wang Yang said on Monday.
