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

To: RealMuLan who wrote (3617)	10/31/2004 9:32:31 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Tumultuous Sino-US ties seen if Kerry wins BEIJING: If John Kerry wins the US presidential elections, Sino-American economic ties could be in for a tumultuous year before they settle into their usual pragmatic mode, observers said. Key areas that Kerry has vowed to highlight include the Chinese currency, labour practices and trade, and he will have to follow up on these promises, they said. “Every new administration comes in, beats on China for a while, and then backs off after a year or so,” said a US trade lawyer in Beijing. China would probably prefer the re-election of George W Bush, who by now is a known quantity to the leaders in Beijing, many of whom have met him personally. Bush argued during his campaign four years ago that China should be viewed as a “strategic competitor,” but in the course of his administration bilateral ties have gradually come to be seen by both sides as better than ever. A similar transformation could take place in a Kerry administration, according to Bob Broadfoot, managing director of Political and Economic Risk Consultancy in Hong Kong. “One positive global development is how quickly the administrations get around to deciding that confrontation isn’t nearly as constructive as dialogue with China,” he said. But before that can happen, Kerry may have to spend months dealing with extensive campaign promises, according to analysts. In an election fought against the backdrop of a sluggish US labour market and a yawning trade gap with China, Kerry has pledged to take on trade terms with Beijing, vowing to level what he has said is an uneven playing field. His plans have fueled the hopes of those who maintain that China is unfairly advantaged by the decade-old currency peg, fixed at around 8.28 yuan to the US dollar. Critics of the peg argue that Chinese imports are effectively subsidised by as much as 40 percent. But petitions submitted this year arguing as much and calling for higher tariffs were rebuffed by a Bush administration, which is happy to negotiate fairer trade terms behind closed doors. afp dailytimes.com.pk