2/03/2010

Obama to stir up the exchange rate issue

To deal with the issue of international currency manipulation

While Obama twice last year the government refused to label China a currency manipulator, but within the United States increasingly strong criticism of the RMB exchange rate, the U.S. Republican Senator Charles Grassley asked Obama would formally label China a currency manipulator, . In addition, the United States at the Peterson Institute for International Economics recently released a report that the yuan undervalued exchange rate on 30% of the world's major currencies, while the undervalued against the U.S. dollar rate even up to 40%.
In response to this Obama, and no single point of the RMB exchange rate, but rather loosely called the international currency exchange rates, he said the United States to expand overseas, the export exchange rate, which is a major challenge for the United States. "How to make our products will not appear overvalued exchange rate manipulation is a major problem, if some countries from manipulating the exchange rate it would gain a competitive advantage for their goods, and our goods will be at a competitive disadvantage. That need to be concerned about the , "Obama said.

According to "The New York Times" reported that a senior U.S. official said on the 3rd, the White House is weighing whether it should be issued in April this year, the Ministry of Finance relating to foreign currency will be the semi-annual report on China as a currency manipulator. Analysts believe that Obama at this time off a dispute with China's currency would be in the country for political gain, but the cards are not available in the hands of the United States than in the previous era of President George W. Bush over.

The new field of energy and then China as a model

Q & A session at the end of Obama's reference to China again, this time on China in the development of clean energy efforts. Obama referred to "The New York Times" article a few days ago, the article said that China's clean energy development and utilization has been a global leader. Obama also mentioned the advantages of China in this respect in part because of the decision-making mechanism is relatively efficient, does not require a lengthy process. Obama conceded that the U.S. has lagged behind, but the disadvantage is not irreversible. He requested that the United States, research institutions, enterprises and capital markets integrate, coordinate actions, so that the new U.S. energy industry with China, Germany to compete.
Prior to Obama in the State of the Union speech two refer to China, said that China and Europe, the United States should not have high-speed rail. He also said that China, India and other countries in transforming their economies, the United States not fall behind. The mention in clean energy technologies in China, in line with the previous speech.