A historic meeting with many ironies between two major powerful countries happened today at the White House. The United States supports individual freedoms and the freedom of speech for all citizens. China represses all free speech and does not like it when anyone speaks their mind who differs with the government. That the chinese leaders have manipulated their currency is a known fact. Last year in February members of the Congress wrote a letter to the U.S. Commerce department to get them to investigate the Chinese practices of money manipulation.
The letter was signed by Robert Byrd (D-WV), Carl Levin (D-MI), Barbara Mikulski (D-MD), Russ Feingold (D-WI), Olympia Snowe (R-ME), Susan Collins (R-ME), Sam Brownback (R-KS), Jim Bunning (R-KY), Debbie Stabenow (D-MI), Ben Cardin (D-MD), and Sherrod Brown (D-OH).The letter, originated by Senators Charles E. Schumer (D-NY) and Lindsey Graham (R-SC), urges Commerce Secretary Gary Locke to launch an investigation into the U.S. manufacturing industry’s allegations that China’s actions with respect to its currency constitute a countervailable subsidy.
However on December 15, 2010 at the offices of U.S. Department of Commerce:
Today marked the end of the 21st session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) in Washington, D.C. The JCCT was co-chaired by U.S. Secretary of Commerce Gary Locke and U.S. Trade Representative Ron Kirk along with Chinese Vice Premier Wang Qishan. U.S. Secretary of Agriculture Tom Vilsack also participated in the discussions. Today’s outcomes will make U.S. businesses more competitive in China, help boost U.S. exports and jobs, and increase market access for U.S. businesses, creators, innovators, entrepreneurs, farmers and ranchers seeking to do business in China.
According to the department:
“China’s announcement that it will not discriminate in government procurement decisions based on where the intellectual property component of the products was developed is a valuable outcome for America’s innovators and entrepreneurs who can continue to create American jobs and selling to the Chinese Government without concern that they will be unfairly blocked from the market. We were also able to obtain China’s commitment to accelerate its accession to the WTO’s Government Procurement Agreement,” said Ambassador Kirk. “China agreed to work with provincial and local governments and to submit a robust revised offer of coverage in 2011.”
“China also committed to revise a major equipment catalogue, which covers heavy machinery and other industrial equipment, and not to use it to discriminate against foreign suppliers or provide prohibited subsidies,” added Secretary Locke. “I am pleased as well with China’s pledge to adhere to openness, non-discrimination, and transparency in its smart grid market, and to cooperate with the United States on smart grid standards, creating more opportunities in a market that is estimated to be worth $600 billion. Similarly, China’s commitment on technology neutrality for 3G and future technologies will ensure market access for American businesses to one of the world’s largest telecommunications markets.”
Agriculture Secretary Vilsack said, “I am pleased with the progress made today towards resolving our differences on beef access. Technical talks will resume as soon as possible with the goal of re-opening China’s market in early 2011. This is a vital outcome for our farmers and ranchers, underscoring the importance of the JCCT in providing a forum for our stakeholders.”
The United States and China also signed seven new agreements covering agricultural collaboration, soybean exports, statistics, and promotion of investment in the United States. In addition, the U.S. Trade Development Agency signed the Operating Framework Agreement that marks 10 years of its China program as well as grants for State Grid Smart Grid Standards Development and an Integrated Real Time Water Monitoring System Feasibility Study and Pilot Project.
The real problem arises from past experiences with the chinese regime, can we really trust China leaders? They seem to always get a leg up because they get what they want then they manipulate their currency giving their business leaders the cream while we look at the spilled suds. Time will tell how tough we must get here in the U.S. toward regimes who do not hold up their end of the bargain. Meanwhile we must do better with our childrens math scores, because the real future belongs to them and they will be the ones to impose tarrifs if we don’t do that now.