China to raise trade imbalance, inflation with US
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Despite months of U.S. pressure on China to let the renminbi appreciate, the next round of high-level talks between the two countries may focus more on other problems stemming from the undervaluation of China's currency.
"U.S. pressure for accelerating the appreciation of the renminbi has weakened," said Huang Yiping, a professor at the National School of Development at Peking University. Instead, officials at the Strategic and Economic Dialogue in Washington on Monday may discuss issues such as China's increasing trade surplus, increasing inflation and overheated growth of foreign exchange reserves, he said, noting that China's "unreasonable" exchange rate was at the core of these problems.
China is also concerned about the monetary policies of the U.S., its high government deficits and debt, as well as barriers to investment for Chinese companies.
The U.S. is concerned about economic imbalances between the two countries, intellectual property protection and investments advanced technologies, said Henry Paulson, former U.S. Treasury secretary, at the Bo'ao Forum for Asia last month.
Other U.S. officials have also expressed worry over business opportunities for U.S. companies in China.
"China is breaking its promise of providing a friendlier environment for overseas companies," said Secretary of Commerce Gary Locke.
