Washington, Beijing sign economic deals worth $14 billion
Thursday, 19 June 2008
Fazle Rashid in New York
DESPITE mutual recriminations over the state of the global economy, each blaming the other for the current economic travails, two world giants -- America and China -- signed massive economic deals amounting to $14 billion ahead of Monday's high profile bilateral meeting.
The US complaints are that Beijing is using regulations to favour domestic companies over foreign rivals and give little attention to the quality of food and drugs it exports. China accused America of mismanaging the dollar and applying severe restrictions on foreign investments. The US credibility and also that of its financial markets are zero everywhere in the world, experts said. Chinese officials say that US failed to prevent the subprime lending crisis. It is counteracting the course of the global civilisation.
Leading business houses in China and the United States announced last Monday signing of deals amounting to $14 billion. The deals include Chinese investments worth $8.0 billion and purchase of aircraft engines, telecommunications equipment, semi-conductors and electronic components.
These were all restricted items. The American companies involved in the deals are Chrysler, Cisco Systems, Ford and General motors, IBM and Motorola and others
America, on the other hand, will invest $6.0 billion in China. The US secretary of treasury who led the American side was quoted as saying "sessions were not meant to resolve specific disputes but instead to discuss how to overcome economic downturn and deal with impending energy and environment crises". The tone and tenor of the talk have been constructive engagement. The Chinese delegation was scheduled to meet US President George W Bush last Wednesday.
In recent times, Beijing has done some tough talking, saying that the United States should do more to open its economy to the Chinese investments and halt the steady slide in the value of dollar against European and other currencies, a factor held responsible for the upward swing of prices of oil and food. China is grappling with its own share of economic problems including high inflation.
The Chinese ambassador to the World Trade Organisation (WTO) blamed the US for failing to safeguard the value of dollar compounding the miseries and hardships of the people around the world who are paying high oil and food prices in dollar. The envoy alleged that America is engaging in protectionism by imposing unfair duties on the Chinese goods and heavily subsidising American products. The US secretary of treasury responded, saying: "We have had a relationship where both sides have been pretty frank privately and publicly as well."
America now admits China is a great economic power. Chinese reactions have been seen as justified. America can console itself from revelation of a survey which says, "China has a long way to go before it is perceived as a multifaceted power and that the country has not yet found way to translate economic gains into more meaningful way to influence others."
DESPITE mutual recriminations over the state of the global economy, each blaming the other for the current economic travails, two world giants -- America and China -- signed massive economic deals amounting to $14 billion ahead of Monday's high profile bilateral meeting.
The US complaints are that Beijing is using regulations to favour domestic companies over foreign rivals and give little attention to the quality of food and drugs it exports. China accused America of mismanaging the dollar and applying severe restrictions on foreign investments. The US credibility and also that of its financial markets are zero everywhere in the world, experts said. Chinese officials say that US failed to prevent the subprime lending crisis. It is counteracting the course of the global civilisation.
Leading business houses in China and the United States announced last Monday signing of deals amounting to $14 billion. The deals include Chinese investments worth $8.0 billion and purchase of aircraft engines, telecommunications equipment, semi-conductors and electronic components.
These were all restricted items. The American companies involved in the deals are Chrysler, Cisco Systems, Ford and General motors, IBM and Motorola and others
America, on the other hand, will invest $6.0 billion in China. The US secretary of treasury who led the American side was quoted as saying "sessions were not meant to resolve specific disputes but instead to discuss how to overcome economic downturn and deal with impending energy and environment crises". The tone and tenor of the talk have been constructive engagement. The Chinese delegation was scheduled to meet US President George W Bush last Wednesday.
In recent times, Beijing has done some tough talking, saying that the United States should do more to open its economy to the Chinese investments and halt the steady slide in the value of dollar against European and other currencies, a factor held responsible for the upward swing of prices of oil and food. China is grappling with its own share of economic problems including high inflation.
The Chinese ambassador to the World Trade Organisation (WTO) blamed the US for failing to safeguard the value of dollar compounding the miseries and hardships of the people around the world who are paying high oil and food prices in dollar. The envoy alleged that America is engaging in protectionism by imposing unfair duties on the Chinese goods and heavily subsidising American products. The US secretary of treasury responded, saying: "We have had a relationship where both sides have been pretty frank privately and publicly as well."
America now admits China is a great economic power. Chinese reactions have been seen as justified. America can console itself from revelation of a survey which says, "China has a long way to go before it is perceived as a multifaceted power and that the country has not yet found way to translate economic gains into more meaningful way to influence others."