Geithner Addresses Economic Relations Between U.S. And China

By Robert Hune-Kalter-Talk Radio News Service

Treasury Secretary Tim Geithner testified before the Senate Finance Committee Thursday on U.S.-Chinese economic relations. Some issues discussed where China’s continued manipulation of their currency, the delayed exchange report policy, and the Chinese piracy of American software.

“Our policy towards China is about protecting the interests of the United States, our national security interests and our economic interests, and our strategy is to expand opportunities for American workers and American businesses,” said Geithner.

Chairman Max Baucus (D-Mont.) expressed concern that there is no strategic and coordinated United States economic policy in respect to China and that different government agencies are using different non-policies.

“It reminds me of a football team. You have a quarterback and fullbacks and running backs, and so forth, and if they don’t all run according to the same play that’s called, that team loses,” said Baucus. “I’m not saying this is a situation we want to win at China’s expense, I’m just saying we don’t want to lose.”

Sen. Ron Wyden (D-Ore.) supported China’s succession into the World Trade Organization. He believed it would be better for the Chinese to be inside a rules based trading system and it would be good for American exports. The Chinese agreed to join the government procurement agreement ten years ago.

“By my calculations, at least five of your predecessors have been slow-danced by the Chinese. We seem to constantly be in this situation, where someone in your position gets slow-danced off the dance floor,” Wyden said.

Geithner did not offer a timetable for when the final report on exchange rate policy would be complete, despite the request by the committee.

“We have put these economic issues at the center of our concerns in the relationship with China,” said Geithner.