🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more

China, U.S. hash out trade disputes

Marketplace Staff May 22, 2007


SCOTT JAGOW: China and the U.S. have issues — trade issues, specifically. This morning in Washington, the two sides sat down, hoping to talk things out. China sent over its biggest trade delegation ever.

This two-day meeting is called The Strategic Economic Dialogue. Despite that scintillating title, the two sides do seem to be excited about the possibilities. Jeremy Hobson reports.

JEREMY HOBSON: Bilateral talks between the US and China are nothing new. The two sides have often narrowly focused on specific disputes. But the Strategic Economic Dialogue is taking a different perspective.

NICHOLAS LARDY: This is a very broad agenda that’s looking at big issues for the medium long term — even over-the-horizon issues.

Nicholas Lardy is a senior fellow at the Peter G. Peterson Institute for International Economics. He’s talking about issues like energy, the environment, intellectual property — and oh yeah, that pesky trade surplus.

Last year, it hit a record $233 billion, blamed on an undervalued Chinese currency. Don’t get your hopes up for a rapid solution on that one, says Lardy.

LARDY: There are a huge number of constraints on the Chinese side in terms of what they feel they can do, and I think the expectations on the U.S. side, particularly in Congress, are likely to be disappointed.

But there may be a few bright spots for the U.S. The Chinese are expected to begin allowing foreign companies to take a larger stake in Chinese banks — and they’re likely to cut tariffs on some services and technologies.

In Washington, I’m Jeremy Hobson for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.