In Remarks to San Francisco’s
Commonwealth Club Ahead of Upcoming
U.S.-China Strategic and Economic Dialogue, Geithner Outlines Progress Made,
Challenges Ahead for Economic Relationship with China
Read the Secretary’s Remarks Here.
SAN FRANCISCO –
Ahead of the fourth round of the U.S.-China Strategic and Economic Dialogue
(S&ED) next week in Beijing, Treasury Secretary Tim Geithner delivered
remarks today outlining the progress made to date in advancing opportunities
for American workers and companies doing business with China as well as the
economic challenges that remain in the U.S.-China economic relationship. He
also underscored the importance of enhancing cooperation between the U.S. and
China to address those challenges and detailed what both countries can do to
help reinforce the global recovery and create jobs.
In his remarks, Secretary Geithner outlined significant
progress made with China in the last three years in growing U.S. exports,
improving the protection of U.S. intellectual property rights, unwinding
China’s discriminatory indigenous innovation accreditation system, opening up
new sectors to U.S. and other foreign firms, negotiating new rules on official
export financing, appreciating China’s exchange rate, and bringing down China’s
In addition to longstanding concerns regarding piracy of
U.S. intellectual property, government procurement preferences, taxes and
tariffs and other limitations on market access in some sectors, Secretary
Geithner outlined key financial sector reforms in China, along with leveling
the playing field with China’s state-owned enterprises and further appreciation
of Chinese currency, as a key priority for the upcoming meeting of the
“Financial reform in China will help reduce one of the main
advantages China’s state-owned enterprises have in competing with U.S.
companies,” said Secretary Geithner.
China’s financial system channels preferential financing to
large state-owned banks limiting the products and returns from savings
available to Chinese consumers. This both limits consumption and starves
China’s most innovative firms and sectors of capital, despite massive domestic
savings. In his remarks, Secretary Geithner explained that to promote a
more efficient financial sector, Chinese interest rates will need to better
reflect market forces. More choices for Chinese consumers and greater returns
to savers will increase Chinese households’ ability to consume goods and
services, including from the United States.
Secretary Geithner delivered the remarks at the Commonwealth
Club in San Francisco.