The U.S./China Economic Talks

By Lisa Valentine

U.S. Treasury Secretary Timothy Geithner and Chinese Vice Premier Wang Qishan have completed their dialogue on U.S. and Chinese economic strategies. The meetings in Washington, D.C. are a positive step on the road to making a “global economy” more than an advertising slogan and having the U.S. admit that we really need China to help pull us out of the economic downturn.

Among the initiatives discussed are having both countries take the IMF Financial System Assessment Programs (FSAPs), creating a single global accounting and financial reporting standard, implementing technical exchanges on developing private pensions, sharing ideas for insurance regulation, working for a more open global trade and investment system, and fighting protectionism.

In an op-ed piece in The Wall Street Journal prior to the meetings, U.S. Secretary of State Hillary Clinton and Geithner outlined their goals. One goal is to “lay the foundation for balanced and sustainable growth in the years to come.” Clinton and Geithner encourage Chinese consumers to become more like U.S. consumers and spend more freely rather than saving. The goal is to wean the Chinese economy off its huge reliance on exports and look to its own populace of 1.3 billion potential consumers to drive domestic economic growth.

The second goal of the meeting was to discuss green issues and climate change and proposed ways to protect the environment by embarking on a low-carbon future that reduces greenhouse gas emissions.

The third goal was to discuss security surrounding unstable global problem spots such as North Korea, Afghanistan and Pakistan.

The piece closes with a Chinese saying, “When you are in a common boat, you need to cross the river peacefully together.”