Rebecca Christie and Peter Cook
April 3, 2010
Treasury Secretary Timothy F. Geithner expressed confidence China will decide that a stronger currency is in the country’s interest, saying the U.S. is trying to “maximize the chance that they move quickly” on the yuan.
China needs an economy that is driven more by domestic demand and less by exports to the U.S., Geithner said in an interview yesterday on Bloomberg Television. His comments follow President Barack Obama’s hour-long conversation with President Hu Jintao urging Asia’s second-largest economy to help balance global growth.
“Our strategy is going to be designed to increase the odds that China does decide to do what’s in their interest, which is to let their currency start to move up again, and that’ll be part of making sure we have a more healthy global recovery in place,” Geithner said in New York.
Hu’s decision to visit Washington this month increases the likelihood his nation will escape being branded a currency manipulator by the U.S., strategists said. Ties between the two countries may be mending after a year marked by disagreements over the yuan’s value, U.S. arms sales to Taiwan and Google Inc.’s decision to pull out of China.