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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1028)	10/16/2003 11:50:53 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Reserve Bank Of Australia Says US Heavy Handed On China SYDNEY (Dow Jones)--Reserve Bank of Australia Governor Ian Macfarlane said Thursday that U.S. pressure on China to pursue trade and foreign exchange liberalization could be excessive. "I think some of the pressuring, and I think this view is shared by the (Australian) government, is particularly heavy handed there. And not likely to be helpful," Macfarlane told a business dinner. [AD] [AD] SingaporeAll the web The remarks come just days ahead of meetings between U.S. President George W. Bush and Chinese officials over issue including trade. China pegs its currency to the U.S. dollar at roughly 8.3 yuan to the dollar. U.S. manufacturers complain the system artificially depresses the value of the Chinese currency, causing distortions in trade flows between the two countries. Bush has promised to take those complaints up with Chinese officials during an Asia-Pacific Economic Cooperation leaders meeting in Bangkok next week. Australia will also attend the conference. Macfarlane was speaking after giving a speech where he warned that Australia should increase its share of trade with China. A policy pursuing stronger Asian currencies and a weaker U.S. dollar would likely push the Australian dollar higher. The Australian currency is already 23% higher against the U.S. dollar in 2003. Macfarlane said that pressuring countries to liberalize too quickly "can have damaging results." That was one of the lessons of the Asian economic crisis in the late 1990s, he added. A country's "institutions have to be in pretty good shape before you can open yourself up," he said. China will eventually reach the point where it can revalue its currency higher. That will come as Chinese growth increases, he said. "It is all a matter of doing it in an orderly way," Macfarlane said. -by James Glynn; Dow Jones Newswires; 612-8235-2955; james.glynn@dowjones.com -Edited by Ian Pemberton -------------------------------------------------------------------------------- sg.biz.yahoo.com