Obama-China Ties Off To Shaky Start
Wisconsin Republican Gov. Scott Walker waits in line to vote Tuesday, June 5, 2012, in Wauwatosa, Wis. Walker faces Democratic challenger Tom Barrett in a special recall election. / AP
Secretary of State Hillary Rodham Clinton has said no nation is more important to the United States than China. But ties between the two powers may be off to a rocky start just days into the Obama administration.
In his inaugural address Tuesday, President Barack Obama spoke of how earlier generations of Americans had "faced down fascism and communism." China's state broadcaster quickly faded out the audio of its live broadcast, the camera cutting back to a flustered studio anchor.
Then, on Thursday, Obama's choice to lead the Treasury Department, Timothy Geithner, wrote that Obama believes China is "manipulating" its currency, which American manufacturers say Beijing does to make its goods cheaper for U.S. consumers and American products more expensive in China.
Geithner's comment was dismissed in Beijing, where the official Xinhua News Agency quoted a deputy governor of China's central bank as saying that the Treasury Secretary-designate's remarks are "not in line with the facts."
China has allowed the value of its currency to rise by 21 percent over the past two years.
The United States often criticizes China about human rights and trade abuses, but Washington and Beijing find themselves increasingly intertwined in a host of crucial economic, military and diplomatic efforts.
China's foreign minister, Yang Jiechi, said his country was committed to working with the Obama administration to strengthen ties and cooperation.
"China-U.S. relations are one of the most important bilateral relations in the world," the official Xinhua News Agency cited Yang as saying.
Selig Harrison, director of the Asia program at the U.S.-based Center for International Policy, said it was "very ill-advised for the new administration to confront China as if this were 10 years ago and we were in a strong financial position internationally."
"We are dependent on Chinese goodwill for our economic survival and viability, and, therefore, it seems to me that this type of posture is very risky," he said.
Trade ties between the United States and China often are tense. China says it has made progress on currency changes and worries about bills introduced in Congress that would impose economic sanctions on China unless it moves more quickly to let its currency rise in value against the dollar.
Although Geithner said China is "manipulating its currency," he suggested Thursday that now might not be the right time to brand Beijing as a currency manipulator under U.S. trade law, which could lead to U.S. trade sanctions against imports from China.
His testimony may not have been a complete shock to China. Yang, the foreign minister, has said he studies American television and newspapers.
Despite an early face-off with China over an intercepted U.S. spy plane, former President George W. Bush made it a priority to strengthen relations with China while also pushing the country to live up to what he considered its duties as an emerging global superpower and a veto-holding member of the U.N. Security Council.
Obama and Clinton, during their long campaigns to secure the Democratic nomination for president, made no secret of their desires for a tougher position with China about its human rights record and its trade practices.
Still, Obama's young administration is not complete: he has yet to name many of the officials who will be dealing with China issues; he also has not yet decided whether to continue the high-level economic discussions the Bush administration has held twice a year with China since late 2006.
Bonnie Glaser, an analyst with the Center for Strategic and International Studies think tank, said the Chinese have said during the past few months that they want a good start to their relationship with the new U.S. administration.
"Everybody just needs to be a little patient on this," Glaser said. "I would not draw any premature conclusions that the administration has decided to take a tougher stance, and hopefully the Chinese will be patient while the administration works this out."
© 2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report. In his inaugural address Tuesday, President Barack Obama spoke of how earlier generations of Americans had "faced down fascism and communism." China's state broadcaster quickly faded out the audio of its live broadcast, the camera cutting back to a flustered studio anchor.
Then, on Thursday, Obama's choice to lead the Treasury Department, Timothy Geithner, wrote that Obama believes China is "manipulating" its currency, which American manufacturers say Beijing does to make its goods cheaper for U.S. consumers and American products more expensive in China.
Geithner's comment was dismissed in Beijing, where the official Xinhua News Agency quoted a deputy governor of China's central bank as saying that the Treasury Secretary-designate's remarks are "not in line with the facts."
China has allowed the value of its currency to rise by 21 percent over the past two years.
The United States often criticizes China about human rights and trade abuses, but Washington and Beijing find themselves increasingly intertwined in a host of crucial economic, military and diplomatic efforts.
China's foreign minister, Yang Jiechi, said his country was committed to working with the Obama administration to strengthen ties and cooperation.
"China-U.S. relations are one of the most important bilateral relations in the world," the official Xinhua News Agency cited Yang as saying.
Selig Harrison, director of the Asia program at the U.S.-based Center for International Policy, said it was "very ill-advised for the new administration to confront China as if this were 10 years ago and we were in a strong financial position internationally."
"We are dependent on Chinese goodwill for our economic survival and viability, and, therefore, it seems to me that this type of posture is very risky," he said.
Trade ties between the United States and China often are tense. China says it has made progress on currency changes and worries about bills introduced in Congress that would impose economic sanctions on China unless it moves more quickly to let its currency rise in value against the dollar.
Although Geithner said China is "manipulating its currency," he suggested Thursday that now might not be the right time to brand Beijing as a currency manipulator under U.S. trade law, which could lead to U.S. trade sanctions against imports from China.
His testimony may not have been a complete shock to China. Yang, the foreign minister, has said he studies American television and newspapers.
Despite an early face-off with China over an intercepted U.S. spy plane, former President George W. Bush made it a priority to strengthen relations with China while also pushing the country to live up to what he considered its duties as an emerging global superpower and a veto-holding member of the U.N. Security Council.
Obama and Clinton, during their long campaigns to secure the Democratic nomination for president, made no secret of their desires for a tougher position with China about its human rights record and its trade practices.
Still, Obama's young administration is not complete: he has yet to name many of the officials who will be dealing with China issues; he also has not yet decided whether to continue the high-level economic discussions the Bush administration has held twice a year with China since late 2006.
Bonnie Glaser, an analyst with the Center for Strategic and International Studies think tank, said the Chinese have said during the past few months that they want a good start to their relationship with the new U.S. administration.
"Everybody just needs to be a little patient on this," Glaser said. "I would not draw any premature conclusions that the administration has decided to take a tougher stance, and hopefully the Chinese will be patient while the administration works this out."
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If Obama impose a taraff, China will either hike the prices of stop exporting to the US, resulting in a massive product shortage and higher prices eitherway (both of which are known as hyperinflation by the way), China will then stop buying US tresury bonds, and why should they? Obama will have to print that 800 billion stimulus money out of thin air, further driving up the hyper inflation.
Its much easier to write brainless comments on a website than to watch your entire life''s savings disappear.
Lee Atwater, on his deathbed, felt awful for the monsters he created.
I, unfortunately, can''t forgive him...because it is the monsters, the likes of you two, that are INTENT ON DESTROYING AMERICA just a much as any external terrorist.
Posted by whatithink10 at 11:51 AM : Jan 25, 2009
Don''t dance to their tune, You are being ''trolled''
Posted by Jesus_in_pee at 08:35 AM : Jan 25, 2009
Dubya also came into office with high approval ratings.
Things can change.
SIEG HEIL, GERBBILS!
Yes but it didn''t take us long to figure out Bush had absolutely no common sense or intelligence, he tried, and would get us deeper and deeper. Obama has the intelligence to try and fix a mess that he inherited, and it will take intelligence just to figure out how much damage Bush really did to this country on all fronts, we need to pray for This administration to get the guidance to get us out of this quagmire. Congress and the senate need to stop fighting and figure out some solutions as well, I for one am sick and tired of the rhetoric from congress they need to wake up and the country should be considered here not there party. Here me John Bainer, Mitch Mc Connell, I do not understand where your mouth and solutions were in these last eight years.
Posted by hillaryin016 at 11:33 AM : Jan 25, 2009
Lee Atwater, on his deathbed, felt awful for the monsters he created.
I, unfortunately, can''t forgive him...because it is the monsters, the likes of you two, that are INTENT ON DESTROYING AMERICA just a much as any external terrorist.
Posted by libsnemesis at 04:05 AM : Jan 25, 2009
They''''re not "lazy."
It''''s just THEIR CULTURE not to make the effort of lifting even one finger to improve their circumstances
Posted by repo_man_08 at 10:09 AM : Jan 25, 2009"
Well, if it is inherent that blacks are lazy, you can''t blame them.
You then would prefer to BLAMD and take down all those monuments to those who forced them here to work, for peanuts for all those years.
Idiot.
Posted by Jesus_in_pee at 08:35 AM : Jan 25, 2009
Dubya also came into office with high approval ratings.
Things can change.
SIEG HEIL, GERBBILS!
--------------------------------------------------------------------------------
Posted by repo_man_08 at 10:17 AM : Jan 25, 2009"
You people are not Americans.
You are self-absorbed, obnoxious p*ricks.
Your EGO is bigger than this country. That''s why you''d prefer for this country to fail rather than admit you were wrong for not supporting him.
Osama - Tell Obama that silly flag he started to wear to get elected is making them angry.