U.S.’s Geithner, China’s Wang discuss economic ties

* Geithner, Wang meet in China airport after G20

* U.S. statement says they exchanged views on economic ties

BEIJING, Oct 24 (BestGrowthStock) – U.S. Treasury Secretary Timothy
Geithner on Sunday discussed economic ties with Chinese Vice
Premier Wang Qishan in a brief meeting in eastern China.

Geithner and Wang, who are designated as special
representatives of their respective presidents on U.S.-China
economic issues, met at Qingdao airport, a stop-off for
Geithner after Group of 20 meetings in South Korea.

“The two sides exchanged views on U.S.-China economic
relations and the preparation for the (G20) Leaders’ Summit in
Seoul,” according to a statement emailed by the U.S. embassy in
Beijing.

It did not elaborate.

The airport meeting in China came at the end of Geithner’s
trip to the Group of 20 finance ministers and central bank
governors meetings in Gyeongju, South Korea, where officials
agreed to refrain from competitive currency devaluations and
reduce current account imbalances. [ID:nTOE69M004]

The United States has been pressuring China to allow its
yuan to rise more rapidly in response to market forces.

Last week, Geithner delayed a semi-annual report to U.S.
lawmakers on whether China manipulates its yuan for a trade
advantage, choosing instead to press the issue at multilateral
meetings including the Gyeongju finance leaders meeting and a
G20 leaders’ summit next month in Seoul.

Geithner said China in Gyeongju was “very supportive” of
finding a multilateral solution to reducing global trade
imbalances in the G20 meetings.

He reiterated he wants to see China accelerate its move
towards a market-determined exchange rate.

“China is well into a very promising and very ambitious
programme of domestic reforms to strengthen domestic growth
because China recognised that it cannot afford to rely as it
has in the past on such an export-dependent model for growth,”
Geithner told a news conference.

“We want to see that progress continue,” he said. “Of
course as a part of that, it’s not ready for its exchange rate
to rise more rapidly in response to market forces.”

The U.S. House of Representatives earlier this month passed
legislation that aims to increase pressure on China by treating
currency undervaluation as a subsidy. It will authorise the
U.S. Commerce Department to apply countervailing duties to
offset any price advantage from currencies.

Geithner made a similar stop-off in China on the way home
from a trip to India in April, which also took place when the
Treasury had delayed its currency report to allow Beijing more
time to move on the yuan.

(Editing by Sugita Katyal)

U.S.’s Geithner, China’s Wang discuss economic ties