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U.S. Commerce Secretary Gary Locke speaks during a press conference at Hong Kong International Airport. - 

by Bill Marcus

A Chinese watch selling in December for $10 today costs $11.50. That's bad news for Chinese exporters because as Chinese goods cost more in Europe -- they won't sell. That will make it harder for China to boost its currency, something the U.S. wants.

U.S. Commerce Secretary Gary Locke is in Shanghai today. He says the euro crisis is hanging over the entire world.

"It can't be ignored and I think perhaps it means a greater urgency that the two countries talk about economic policy and that we talk about ways in which we can move forward about ways in which we can re-balance our economies," says Locke. "So, I think it's even better that we're meeting at this time."

Locke will join Secretary of State Hillary Clinton, Treasury Secretary Timothy Geithner and their Chinese counterparts in Beijing next week. The American delegation had hoped that summit would be the place where China announced it was revaluing its currency. Now that seems less than likely.