Reference News: G-20 Sino-US relations which - military

British Broadcasting Corporation (BBC) recently published an article entitled "The 20-nation summit on Sino-US relations were" on the Chinese web journalist for the BBC Munch. Article excerpts are as follows:

The 20 held in South Korea since the summit was the global financial crisis since the outbreak of 2008, the fifth summit of 20 countries. This is the first time in Asia, the 20-nation summit meeting. 20 economic power of wealth accounts for 85% of global wealth, showing 20-nation summit on the global economic order in the pivotal position.

Hosts South Korea, said the summit can lay the foundation of history requires the financial crisis of the international economic order. Economist Zhong Dajun in Beijing that the 20-nation summit is important, mainly due to the decision situation. Facing a serious imbalance in international economic and monetary issues to be resolved, and highlights the importance of the summit.

Although there have been comments that the 20-nation summit in dealing with geopolitical and international economic relations also play an important role in its political role as much as the United Nations. Nevertheless, China and neighboring countries, the differences on strategic issues, such as the East Asian countries using the channels of control, the South China Sea islands dispute over sovereignty, will not become the focus of the meeting.

Summit, the main concern is the major international economic problems, global currency war and how and whether countries should be to stimulate the economy are major differences on issues, and how to cut government spending and other differences. The United States and China, two of the world economic powers will play a pivotal role in the summit.

Before the summit, the United States continued to exert pressure on China, the RMB to respond to market pressures, rapid appreciation, appreciation is also reluctant to accuse China of a form of trade protectionism. U.S. Treasury Secretary Timothy Geithner said the G20 will be used to encourage China's other trading partners to persuade Beijing to let the yuan appreciate more quickly.

Geithner said in a television interview on Thursday in China, progress has been made on the currency issue, the Beijing authorities that the sustained appreciation of the very important. He said: "market forces reflects a belief that the strong growth in China, strong productivity growth, if you ignore or resist market forces, these pressures will not disappear, it will lead to higher inflation, asset values will rise further high, which is very unfavorable to China. "

Obama said Thursday the United States and China to discuss economic issues in the process of "making progress", "As the world's two most important economic power, we ensure balanced and sustained economic growth has a special obligation."
Chinese President Hu Jintao also said the pre-commitment, China will do its utmost to reach a consensus at the summit.

States in the fiscal and monetary policy differences are G20 agree on the major challenges facing.

U.S. Treasury Secretary Timothy Geithner want countries to GDP ratio and surplus or deficit developed, the development of a global goal, a better balance between consumer countries like the United States and China, and exporting countries like Germany. He urged countries in their efforts last month in the next few years, the cash account balances will be limited to 4% of GDP or less.

Obama yesterday open letter to the leaders of 20 countries, said that previously relied on exports to offset their lack of demand in the country must make a change. Obama said that although the increase in Asian countries to expand domestic demand, but the U.S. economy is strong on the global economic recovery is essential.

However, the position of the United States does not seem to reach a consensus in the allies. Germany's current account surplus of more than 6% of GDP, is the main opponents of the U.S. proposal. Restricted cash account in Germany do not agree with the proposal, not in favor of setting a quantitative target. German economic growth of 2.7% this year, mainly due to exports.
Some analysts believe that the U.S. proposal was a close ally of the Western world criticism, showing the balance of power in the backward countries like China. But Zhong Dajun that compared with Germany, China's exports more dollar reserves up, bigger victims, but China's criticism of the United States but not the sound. Deep level of Sino-US economic co-binding, will try to overcome differences and reach an agreement.

The communique was leaked before the summit, the details show that 20 countries will seek to develop a more market-oriented exchange rate, but the rich countries on how to solve such as China and Brazil with the emerging tensions between countries is not a new proposal.
Editor: soul power