G20: U.S. China Relationship (Updated)
China has relied for much of its economic growth on Americans buying its goods.
But as US consumers feel the pinch, China is hoping its citizens will spend more to maintain demand and keep its factories open.
The BBC’s economics correspondent Andrew Walker in Pittsburgh has been talking to two experts, Sharon Feng, a businesswoman who’s been living in the US for 25 years and Tom Buelle of Pittsburg China Center.
See also a video from Bloomberg:
Also at the G20 summit, China emphasized the need to reduce rich-poor development imbalances. From Reuters:
“We believe that the root cause of global economic imbalances is the imbalance in development,” Zheng Xiaosong, director-general for international affairs in the Chinese Ministry of Finance, told a news conference in Pittsburgh, host city of the latest G20 summit.
“We believe in reducing the gap between North and South and promoting shared development that is balanced and sustainable,” said Zheng.
U.S. President Barack Obama has called for the G20 summit of major rich and developing countries to focus on ways to build a more balanced global economy.
China has said it does not object to the discussion.
But a focus on global economic imbalances could also draw uncomfortable criticism of Beijing’s managed yuan currency and big trade surpluses, which some economists have said were a background factor in sparking the international financial crisis.