May 23, 2010
Treasury Secretary Timothy F. Geithner will tell his Chinese counterparts that Europe’s battle with a Greece-triggered debt crisis should have only a small effect on the broader global recovery, a U.S. official told reporters in Beijing today.
Geithner and Secretary of State Hillary Clinton are in China for the two-day Strategic and Economic Dialogue, a set of annual high-level talks. Geithner will then depart for London, Berlin and Frankfurt to meet with European officials and reinforce his call for coordinated efforts to fight off the crisis and rein in government spending.
One-sided efforts like Germany’s ban on naked short-selling are counterproductive and unlikely to boost investor confidence, said the U.S. official, who spoke on condition of anonymity. The official also said such measures have a poor historical track record and are unlikely to be adopted on a wider scale.
Heading into this week’s meetings, U.S. Treasury officials called for China to “do everything it can” to contribute to a broad-based global recovery. This includes allowing the yuan, which has been pegged at about 6.8 to the dollar, to appreciate against the U.S. currency.