All posts by RWZ - 327. page

China recently suggested the creation of a “global currency” to replace the US dollar. The US is firmly against the proposal. US President Obama told the press on the March 24 that “the US dollar is extraordinarily strong.” Primary US economic officials retorted on the same day.

Despite US rebuttal, Mr. Zhou Xiaochuan, Governor of the central bank of China, mentioned this “international reserve currency” issue again on March 25. The new members of the G20 are skeptical about the current international currency system.

The article quoted a Russian official announcement on the necessity of a G20 discussion on a new IMF international currency. The British Prime Minister was also quoted on his dismissal of such a discussion.

Source: The Chosun Ilbo, March 26, 2009
http://chn.chosun.com/site/data/html_dir/2009/03/26/20090326000033.html

Global Times, under Chinese state daily news, Renmin, reported from New York that the United States responded strongly against China’s call for a new international reserve currency to replace US dollar.

The report referred to an AFP article which quoted President Obama as stating that the“US dollar is extraordinarily strong” on March 24.
 
Earlier, US Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner both agreed that they’ll “unconditionally” refuse the switch to an international currency. The Wall Street Journal reported the story in an article entitled :“China Points the Finger at US Dollar”. The New York Times believes that this demonstrates China’s worry about the safety of its assets in US dollars as well as China’s intent to use this as a playing card in the G20 Summit.

Source: Renmin/Global Times, March 25, 2009
http://world.huanqiu.com/roll/2009-03/414150.html

After Coca-Cola’s acquisition of Hui Yuan failed the antitrust review by the Chinese Ministry of Commerce, the news quickly gained media attention. The failed acquisition triggered a range comments.

Many Foreign media cited trade protectionism as the cause. Because the case sets the precedent for Chinese Antitrust Law governing a foreign acquisition, Chinese researchers indicated that the reported reactions reflected a worry about future foreign acquisitions. The Wall Street Journal insisted this was a warning to foreign investors.

Foreign media also brought up the potential negative effect on Chinese investments overseas. Chinese experts dismissed this view as they believed the ruling was merely based on protecting healthy competition as they stated that there was no bias against international corporations.

Source: Xinhua News/International Herald Leader, March 23, 2009
http://news.xinhuanet.com/herald/2009-03/23/content_11056881.htm

On March 13, Chinese Premier Wen Jia Bao suggested in a press conference that before 2008 China waive more than 40 billion RMB worth of debt from 46 lesser developed countries while providing over 200 billion RMB of foreign aid to developing countries. He also mentioned that the United States provided less than 1/4 of promised aid in 2005.

Beginning in 1950, the Chinese foreign aid program now tops developing countries. During fiscal year 2006 to 2007, India only provided USD $500 million in aid although USD $1 billion was promised. Brazil, another large developing country, received more aid than it provided.

Chinese aid does not have political conditions attached, which makes it well received by developing countries. Currently there are more than 140 countries receiving aid from China.

Source: Elite Reference, March 21, 2009
http://news.wenxuecity.com/messages/200903/news-gb2312-820112.html