Wednesday, January 12, 2011
US Treasury Secretary Geithner: China too much like the United States...
U.S. Treasury Secretary Timothy Geithner said the Chinese economic model must “change fundamentally,” in answer to a question at the John Hopkins School of Advanced International Studies (SAIS) on the Chinese economy on Jan. 12.
Geithner made the remark in answer to a question by a member of the audience.
US Treasury Secretary Geithner: Chinese Economy Must ‘Change fundamentally’
He has just read prepared remarks on the main focus of the United States in its economic relationship with China.
He outlined a number of the concerns the U.S. has with the Chinese economy, including in competing in the Chinese market.
These included the fact that the “commanding heights” of the Chinese economy are in the hands of the Party-state. The cozy relationship many companies have with the state allows them to hide behind trade barriers and take advantage of a wide range of preferences and subsidies that give them an (arguably unfair) edge over U.S. and other foreign firms.
These preferences include access to low-cost finance, land, energy, and access to government contracts—where exchange of lucre often serves to lubricate the deals.
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