Geithner To Speak In Favor Of US Exporters In The Bilateral Dialogue Between The US And China Next Week

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, Timothy Geithner, US Treasury Secretary, said yesterday that American exporters will get a level playing field from a stronger Chinese yuan. However, in his talks with Beijing next week, he has decided to focus primarily on reducing trade barriers. While giving a speech at the Port of Tacoma about growing US exports to China, Geithner expressed confidence that China would uncover that a more flexible exchange rate regime was in its interests. He told a news conference, "China moving again toward reforming its exchange rate regime will allow the exchange rate to reflect market forces. This is a very important part of our efforts to make sure our firms are placed on a level playing field." When asked whether he needs a contractual agreement with China on the yuan to show progress, he said, "I don't think we do. I think China needs to just demonstrate to the world that it's able to take actions that are enormously in their interest." Timothy criticized China's new "indigenous innovation" program, as he thinks that this program would put US exporters at a competitive disadvantage, by providing preferential treatment to some domestic companies and products in government procurements. "American companies are very concerned that this approach has the potential to discriminate against foreign-made products and could disadvantage American exporters and investors as they compete with Chinese firms. We share these concerns," Geithner said. The Chinese government has taken several steps in this regard; however, some work is yet to be done in this area. Bilateral Strategic and Economic Dialogue talks will take place between Geithner, several Obama administration officials like Secretary of State Hillary Clinton, Commerce Secretary Gary Locke, U.S. Trade Representative Ron Kirk, etc. and their Chinese counterparts on May 24-25. "We want China to give American firms the same opportunities to compete in China that Chinese firms face in the United States. This is a simple principle of fairness," Geithner said. Read more