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<p class=MsoNormal><st1:country-region w:st="on"><st1:place w:st="on"><b><font
size=5 face="Trebuchet MS"><span style='font-size:18.0pt;font-family:"Trebuchet MS";
font-weight:bold'>China</span></font></b></st1:place></st1:country-region><b><font
size=5 face="Trebuchet MS"><span style='font-size:18.0pt;font-family:"Trebuchet MS";
font-weight:bold'> reprimanded by G20 leaders<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>By Chris Giles in <st1:City w:st="on">London</st1:City>
and Alan Beattie in <st1:place w:st="on"><st1:State w:st="on">Washington</st1:State></st1:place><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>Financial Times | March 30 2010 <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>http://www.ft.com/cms/s/0/a1e38f96-3c23-11df-b40c-00144feabdc0,s01=1.html<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>Five prominent members of the Group of 20
leading economies, including the <st1:country-region w:st="on">US</st1:country-region>
and <st1:country-region w:st="on">UK</st1:country-region>, sent a coded rebuke
to <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
on Tuesday against backsliding on economic agreements.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>In a letter to the rest of the G20 that
shows frustration at slow progress this year, the leaders warned:
“Without co-operative action to make the necessary adjustments to achieve
[strong and sustainable growth], the risk of future crises and low growth
remain.”<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>G20 officials said the letter – signed
by Stephen Harper and Lee Myung-bak, the Canadian and South Korean leaders who
will chair the group’s two summits this year, <st1:City w:st="on">Barack
Obama</st1:City>, <st1:country-region w:st="on">US</st1:country-region>
president, Gordon Brown, <st1:country-region w:st="on"><st1:place w:st="on">UK</st1:place></st1:country-region>
prime minister, and Nicolas Sarkozy, French president – was an attempt to
restore flagging momentum to the international process.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:City w:st="on"><font size=2 face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS"'>Ottawa</span></font></st1:City><font
size=2 face="Trebuchet MS"><span style='font-size:10.0pt;font-family:"Trebuchet MS"'>
and <st1:City w:st="on"><st1:place w:st="on">Seoul</st1:place></st1:City> are
concerned that the G20 summits they will host, in June and November
respectively, might fail to live up to expectations.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>In a move that will irritate <st1:country-region
w:st="on">China</st1:country-region>, the five leaders specifically raised the
issue of exchange rates in relation to reducing trade imbalances, a topic the
G20 avoided in 2009 to help secure agreement at the <st1:City w:st="on">London</st1:City>
and <st1:City w:st="on"><st1:place w:st="on">Pittsburgh</st1:place></st1:City>
summits.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>“We need to design co-operative
strategies and work together to ensure that our fiscal, monetary, foreign
exchange, trade and structural policies are collectively consistent with
strong, sustainable and balanced growth,” the letter said.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>It has been released in the middle of an
intense debate in <st1:State w:st="on">Washington</st1:State> about how the
White House should confront <st1:City w:st="on"><st1:place w:st="on">Beijing</st1:place></st1:City>
over the perceived strength of the renminbi. Some lawmakers are ratcheting up
calls for <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
to be designated a currency manipulator in a forthcoming report.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>Charles Schumer, the third most senior
Democrat in the Senate, this week again advocated a bill that would allow the <st1:country-region
w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> to include
estimates of currency misalignment when calculating anti-subsidy duties to be
imposed on imports. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>As well as refusing to budge on its
currency, <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>
has been obstructing the G20 process this year. It has hampered efforts by the
International Monetary Fund to issue a report which Dominique Strauss-Kahn,
managing director, told the Financial Times in January would conclude that
national strategies for growth around the world “will not add up”.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>The leaders’ letter makes reference to
the slow progress of this process, urging all G20 members to “move
quickly” to “report robustly on what each of us can do to
contribute to strong sustainable and balanced global growth”.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>The letter also sounded a warning note over
the so-called <st1:City w:st="on"><st1:place w:st="on">Doha</st1:place></st1:City>
round of global trade talks, which is at a virtual standstill after the
collapse of negotiations in 2008.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Trebuchet MS"><span style='font-size:
10.0pt;font-family:"Trebuchet MS"'>“With regard to <st1:City w:st="on"><st1:place
w:st="on">Doha</st1:place></st1:City>, we need to determine whether we can
achieve the greater level of ambition necessary to make an agreement
feasible,” the letter said. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face="Trebuchet MS"><span
style='font-size:10.0pt;font-family:"Trebuchet MS";color:navy'><o:p> </o:p></span></font></p>
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