Richard DeKaser: Negotiations between China and U.S. businesses
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JEREMY HOBSON: Now let’s get to the Chinese President’s visit to the United States. China’s national anthem was played at the White House this morning. President Hu Jintao will be spending a lot of time with President Obama. But he’ll also meet with CEOs of GE and Goldman Sachs, among others.
Richard DeKaser is an economist with the Parthenon Group. He’s with us live. Good morning.
RICHARD DEKASER: Good morning.
HOBSON: So what do these CEOs want from China?
DEKASER: In a single word, they want access. They want equal access when bidding on government contracts, they want to stop the bootlegging of American movies and music, and generally the theft of property. And they want to scale back the requirement that they have partnerships with Chinese companies. They want to operate on their own.
HOBSON: What does China want from the CEOs?
DEKASER: Pretty much the opposite. They want to mollify American companies. They rely desperately on American technology. Their economic development is heavily predicated on this continued flow of technology into China. They want these companies to be satisfied that the existing relationships are in their best interest. And hopefully over time they will find that it’s mutually productive and it’s a win win for all involved.
HOBSON: Richard do you think that either side is going to get some of what they want from these meetings?
DEKASER: I do. I do. I think it’s in the usual fashion of give and take. There’ll be some very modest ground giving on both sides. The American companies at the end of the day will except the terms that they’re given because the market is so huge in China, and Chinese companies will in turn give back. They’ve been letting their currency rise, that’s been one of the demands American companies have been having. And that in turn will provide a little ground on their end. So it’s the usual negotiating back and forth. Each side will give a little, no one will get everything they want.
HOBSON: Richard DeKaser, economist with the Parthenon Group, thanks so much.
DEKASER: My pleasure.
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