News / Economy

China Agrees to Scale Back Currency Controls

China Agrees to Scale Back Currency Controlsi
X
Scott Stearns
July 10, 2014 6:00 PM
U.S. and Chinese officials have closed two days of talks in Beijing that included discussions on cyber-security, currency controls, and rival territorial claims in the South China Sea. VOA State Department Correspondent Scott Stearns has the story.

U.S. and Chinese officials have closed two days of talks in Beijing that included discussions on cyber-security, currency controls, and rival territorial claims in the South China Sea.

As Chinese manufacturers produce more goods to meet growing domestic demand, China has agreed to scale back intervening in its currency market, .

Chinese Central Bank Governor Zhou Xiaochuan said, "We will allow market supply-and-demand relation to play a bigger role in determining the exchange rate, expand the floating range of the exchange rate, and increase the exchange rate's flexibility."

U.S. Treasury Secretary Jacob Lew says it is a win for both countries.

"It is fundamentally about the fairness of the trading system and the opportunity of U.S. workers and firms to compete fairly and Chinese consumers to have the purchasing power that goes with a fairly-valued currency," he said.

Cyber-security

At this Strategic and Economic Dialogue, U.S. and Chinese officials also discussed cyber-security following the U.S. indictment of five Chinese military officers on charges of cyber-espionage.

Secretary of State John Kerry said, "The loss of intellectual property through cyber has a chilling effect on innovation and investment. Incidents of cyber theft have harmed our businesses and threatened our nation's competitiveness."

Cyber-espionage is a sensitive topic for China, as its manufacturing strength outpaces innovation, according to American University professor Hillary Mann Leverett.

"Today, China is not a place that can innovate. And even though they are trying, they are not there," said Leverett. "And so, in part, they see this as the United States pushing its advantage and not allowing China essentially to copy, and then perfect, improve on, and learn to innovate that way."

South China Sea

U.S. and Chinese officials also discussed competing territorial claims in the South China Sea, where Vietnam says one of its patrols was rammed by China's coast guard near a Chinese oil rig in disputed waters. Resolving those rivalries peacefully should be part of what Kerry calls defining a new partnership between Washington and Beijing.

"It is not going to be defined by us carving up areas and suggesting there are spheres of influence," he said. "It is going to be defined by our mutual embrace of standards of global behavior and activity that protect the values and the interests that we have long worked by and the norms of international behavior."

Vietnam is working with the Philippines on legal challenges to Chinese claims in the South China Sea, where Beijing says Filipino plans to drill for natural gas are "illegal."

"Any foreign company, if it has not received China's permission, exploring oil and gas in waters under Chinese jurisdiction is illegal and invalid," said Chinese Foreign Ministry Spokesman Hong Lei.

While the United States is helping upgrade the Filipino navy, Washington says it is not taking a position on any of the rival claims in the South China Sea.

 

You May Like

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Religion Aside, Christmas Gains Popularity in Communist Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.