On Your Mark.. Get set… RHETORIC!!

Sunday, May 20, 2007 10:50
Posted in category Red Tape, The Big Picture

With only a day left to blow off steam, both parties to the United StatesChina Economic and Security Review are getting ready for what surely will be an interesting debate on trade, currency, piracy and food safety.

Both sides hope for the best : the US hopes China trade talks yield results while China hopes talks will ease trade friction with US.

Should it not go as planned… well, the U.S. has a backup plan Lawmakers ready trade bills as U.S., China talk just in case little progress is made, as expected.

As the road to the round table has picked up speed, both sides have built their cases, and in a bit of a surprise China did take action that was geared to release a little pressure from the kettle.

Unfortunately, the widening of the RMB band was not as well received as some Chinese leaders may have hoped, and this is surely going to add more pressure to an already difficult negotiation. Of course, that didn’t stop the Chinese from announcing that it has ruled out major currency moves ahead of Washington talks and warning against punitive measures

For the US Team, it is going to be imperative to find common ground quickly and come out of the meetings with some fruit. It is after all an election year, and the administration is feeling the ratings heat and hearing the sounds of drums off in the distance.

For the Chinese side, I am not sure there will be much give. there very much is an air that they are in control here, and their position is currently in the dominant position. however, to come out of these talks unscathed, they will need to take some of their own medicine and take the long view on the relationship …. otherwise they may never reach the brass ring.

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One Response to “On Your Mark.. Get set… RHETORIC!!”

  1. Can’t Change RMB? Change Tactics… Scare Consumers! | All Roads Lead To China says:

    June 6th, 2007 at 9:27 am

    […] recently, the U.S. and China held another round of Economic discussions in Washington, and instead of IPR and the trade deficit, the number one topic of discussion was product safety. […]