US'S ALBRIGHT RAISES SPECTER OF CHINA DEVALUATION IF MFN FAILS
By John Shaw
ÿÿÿÿÿWASHINGTON (MktNews) - Seeking to describe the dire consequences of the failing to extend most-favored nation trading status to China, Secretary of State Madeleine Albright told a Senate panel Thursday that the absence of MFN might eventually provoke China to devalue its currency.
ÿÿÿÿÿSuch a devaluation, she said, poses "potentially dire consequences for its neighbors, for China's own stability, and for markets worldwide, including our own."
ÿÿÿÿÿAlbright argued in her prepared testimony to the Senate Finance Committee, that revoking MFN could cause serious damage to the U.S. and Asian economies largely by "destabilizing currency markets in the Asia-Pacific" region.
ÿÿÿÿÿShe praised the role China has played so far in promoting financial stability in Asia during the economic crisis, citing its direct assistance, multilateral cooperation and participation in international financial institutions.
ÿÿÿÿÿThroughout their testimony, Albright and U.S. Trade Representative Charlene Barshefsky sought to link the renewal of MFN with economic stability in Asia, which in turn promotes American prosperity.
ÿÿÿÿÿAlbright also praised China's "own daunting program of market reforms," and said MFN is a way of encouraging the government to continue this process.
ÿÿÿÿÿ** Market News Service Washington Bureau: (202) 371-2121 **
09:40 EDT 07/09
economeister.com
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Well - this answers part of the question re: what China expects in return? |
