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Geithner to talk currency in China
In a surprise move, Treasury Secretary Timothy Geithner will meet with Chinese officials in Beijing on Thursday.
Geithner is on a trip to India, and had not been scheduled to visit China.
The move comes days after Geithner announced the U.S. would
delay a report on currency manipulation. The release of the report threatened
to intensify tensions between the two countries.
Geithner will meet with Chinese Vice Premier Wang Qishan, a Treasury spokesman said.
President Barack Obama is scheduled to meet with Chinese President Hu Jintao next week in Washington. The two leaders spoke for an hour last week on a range of topics, according to the White House.
The U.S. has been looking for backing from China on United Nations sanctions again Iran, and China’s position in recent days has appeared to move close to the U.S.
The Treasury report was due on April 15, and Treasury was under pressure from Democrats and Republicans in Congress to mark China as a currency manipulator. Sen. Charles Schumer (D-N.Y.) has vowed to force a Senate vote on legislation targeting China as a currency manipulator by May.
He voiced skepticism over Geithner's trip.
"Every administration has thought it could get something done by talking to China. But years of experience have shown that the Chinese will not be moved by words; they only respond to tough action," he said in a statement.
The decision to delay the report was received positively in China, but won a mixed response from members of Congress. Geithner said the report was being delayed to try to address issues related to the currency fight in other arenas.
China pegs its currency to the U.S. dollar so that the two currencies rise and fall in tandem. This is seen as giving Chinese exports an unfair trade advantage: U.S. labor groups, manufacturers and lawmakers say it artificially lowers the price of Chinese goods in the U.S. and makes U.S. goods more expensive in China.
This story was updated at 1:24 p.m.
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