However, the US is concerned that China might not actually like to tie its international responsibilities with its emergent economic sway. And that, according to the West, threatens, rather than strengthens, active global arrangements. On North Korea, China has been bearing diplomatic arrangements to persuade Pyongyang to end its nuclear designs. Nevertheless, it is uncertain of jeopardising the pour of Chinese oil and provisions that keeps it breathing.
In Africa, Chinese firms are investing extraordinarily in power, energy, raw material and minerals to stimulate China’s growth. The “no-strings” funding in Nigeria and Ethiopia fly in the teeth of America and its allies' decision to tie investment with upgrade of human rights and the environment in regimes that do not toe their line of thought. China has sent peacekeeping troops to Darfur but it bolsters the Sudanese regime by purchasing petroleum and supplying arms.
Nevertheless, the most litigious subject will be its currency. Washington thinks China’s currency, the Renminbi, is undervalued, giving Chinese exporters an unfair advantage. Beijing worries that the dollar is depreciating too quickly, threatening to erode the value of China’s huge holdings of United States Treasury bills.
During the meeting, President Obama pressed Beijing to allow its currency to rise, ending an effective peg to the dollar. President Hu Jintao of China, expectedly, politely declined, persisting that exchange rate restructuring will be taken up in due time. Numerous analysts state China will shift to a more flexible currency, just not now. Beijing is by now certain that ‘exchange rate’ reform lead to offers paybacks. It would, to give an example, give Beijing further hold over its monetary policy. It, as well, would bring down the cost of imports, help streamline the Chinese financial system and assist it in constructing a consumer-centric economy rather than one so profoundly reliant on exports.
In Africa, Chinese firms are investing extraordinarily in power, energy, raw material and minerals to stimulate China’s growth. The “no-strings” funding in Nigeria and Ethiopia fly in the teeth of America and its allies' decision to tie investment with upgrade of human rights and the environment in regimes that do not toe their line of thought. China has sent peacekeeping troops to Darfur but it bolsters the Sudanese regime by purchasing petroleum and supplying arms.
Nevertheless, the most litigious subject will be its currency. Washington thinks China’s currency, the Renminbi, is undervalued, giving Chinese exporters an unfair advantage. Beijing worries that the dollar is depreciating too quickly, threatening to erode the value of China’s huge holdings of United States Treasury bills.
During the meeting, President Obama pressed Beijing to allow its currency to rise, ending an effective peg to the dollar. President Hu Jintao of China, expectedly, politely declined, persisting that exchange rate restructuring will be taken up in due time. Numerous analysts state China will shift to a more flexible currency, just not now. Beijing is by now certain that ‘exchange rate’ reform lead to offers paybacks. It would, to give an example, give Beijing further hold over its monetary policy. It, as well, would bring down the cost of imports, help streamline the Chinese financial system and assist it in constructing a consumer-centric economy rather than one so profoundly reliant on exports.
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