US pushing for more open markets in China
Updated: 2005-10-16 09:12
The Bush administration's economic team is expected to argue for a quickening
pace of China's financial market reform, and push the country wide open to
foreign banks, investment firms and insurance giants.
U.S. Treasury Secretary John Snow and the Federal Reserve chairman Alan
Greenspan are leading a strong economic delegation visiting Beijing, who are
sitting face to face on the table with Chinese economic officials on Sunday in
the annual joint Sino-American economic conference.
U.S Treasury Department senior officials say the plan for the Chinese is part
of an comprehensive Washington bid to put the Chinese currency yuan into a
broader debate over China's reliance on exports as the main engine of economic
growth, the New York Times reported.
The plan calls for Beijing 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
Chinese President Hu Jintao (R) shakes hands
with U.S. Treasury Secretary John Snow during a meeting with leaders of
the G20 Finance Minister and Central Bank Governors inside the Great Hall
of the People in Beijing October 15, 2005.
"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 not
fresh, and often supported by Chinese leaders in principle, the list reflects an
increased effort to lecture Chinese officials about its internal financial
issues, which could backfire, the New York Times reported.
Bank of England Governor Mervyn King (C) chats
with U.S. Federal Reserve Board Chairman Alan Greenspan (R) after a
luncheon during the G-20 Finance Ministers and Central Bank Governors
meeting in Grand Epoch City in Xianghe of the Hebei province, about 100 km
(62 miles) east of Beijing October 15,