China needn’t to be responsible for US crisis
Sino-Us relations is now facing new challenges due to the global economic crisis, said Morgan Stanley Asia Chairman Stephen Roach on Tuesday at the US Congress’s US-China Economic and Security Review Commission.
Roach said that during the recession while the America’s unemployment gets high, it is inevitable for people to believe what Geithner has commented—China is playing a more influential role in this crisis. His words were rooted from what Treasury Secretary Timothy Geithner had said at a Senate confirmation. The latter blamed China for controlling the Renmibi exchange rate.
There are three factors for US to think China should be responsible for the crises—an expansion of bilateral trade deficit, manipulation of the currency exchange rate and the low disposable income for US domestic employees.
In Roach’s point of view, US administrators and leaders have to shift attention from the serious crisis to other aspects. Therefore, China becomes a scapegoat by being accused of responsible for this recession.
He said that the bilateral deficit was grounded on some factors. A bubble-prone, savings-short US economy needs a foreign saving surplus to balance its inflation. In this sense, the economy tries to attract capital inflow by massive current account and deficits.
In fact, besides China, the US runs a multilateral trade deficit with 100 other trading partners, which of course is not resulted from Sino-US trading imbalance. So, Roach thinks it is incorrect to blame China for US domestic problems.
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