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Sunday, October 16, 2005

Thanks for the Suggestion

If someone tells me I need a haircut, I won't get one for a week or two so that when I do, they won't think it had anything to do with their comment. Once, my neighbor mentioned my lawn was getting a bit long.  It got pretty ugly before I finally mowed it. I think China reacts to suggestions from the U.S. in the same way:

U.S. Offers Details of Plan for Open Markets in China By Edmund L. Andrews, NY Times: The Bush administration is expected to present China's political leaders on Sunday with a sweeping plan to overhaul China's financial markets and open the country to foreign banks, investment firms and insurance companies. ... The plan ... calls for China to speed up the privatization of state-owned companies, including banks; to develop a Chicago-style futures market for currency trading; to establish an independent credit-rating agency; and to crack down on bailouts for banks left holding bad loans. "What we tried to do is take a quantum leap in sophistication and scope," said Timothy D. Adams, undersecretary for international affairs at the Treasury Department. "It gives you a picture of the truly complex nature of what we are trying to do." Though many of the ideas are familiar, and often supported by Chinese leaders in principle, the list reflects an increased effort to lecture China about internal financial issues. That could backfire. Chinese leaders invariably bristle at pressure from American officials, and they could view the new American "priorities" as an unwelcome intrusion. The new tack comes as Treasury Secretary John W. Snow continues to show little progress on the volatile economic dispute with China over exchange rates...

    Posted by on Sunday, October 16, 2005 at 12:36 AM in China, Economics, International Finance, International Trade, Politics | Permalink  TrackBack (0)  Comments (8)


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