US China Meetings

http://www.nytimes.com/2010/05/25/world/asia/25diplo.html

"President Hu Jintao, welcoming the 200-strong American delegation in the Great Hall of the People, praised the “mutually beneficial and win-win cooperation” between the United States and China." Wow Obama sent his entire government over there. That is how important China is to Corporate America.

Mr. Geithner lobbied against Chinese government procurement rules that give preference to products with intellectual property developed in China (Protectionism)

Treasury Secretary Timothy F. Geithner did not mention China’s currency in his opening remarks (Must handle the Chinese with Kid gloves), and the United States did not broach it in the first working session. (Don't want to offend our bankers) The administration has decided not to prod Beijing at this meeting (So what is the point of the meetings) , officials said, concluding that it would resist outside pressure.

If the US was serious about the Chinese under valuing their currency the solution is simple. Tariffs! Consider the problem solved. But that might make the Chinese angry and they could refuse to make Ipods for Steve Jobs. Can't have that.... so no Tariffs.

"The Chinese have their pet issues as well: Beijing is pushing for the United States to loosen controls on exports of high-technology equipment with potential military applications." So they can build a better military and offset our strength when they decide to take back Taiwan.