Hu Jintao Meets With Obama: China'S Exchange Rate Reform Can Only Be Promoted Step By Step.

The seventh meeting between Hu Jintao and Obama

Hu Jintao pointed out that mankind is about to enter the second 10 years of twenty-first Century.

Facing the profound and complicated changes in the international situation, it is a major task for our two countries to promote cooperative and comprehensive Sino US relations at a higher level and to cooperate with partners in the areas of common interests.

This not only concerns the future of their respective countries, but also has a profound impact on the future of the whole world.

China is willing to strengthen dialogue, exchanges and cooperation with the US side, respect the core interests of each other and promote the sustained, healthy and stable development of Sino US relations.

Obama said he was very pleased to hold the seventh meeting with Hu Jintao.

The US side is willing to strengthen cooperation with China on promoting strong, sustainable and balanced growth of the world economy.

Hu Jintao pointed out that Sino US economic and trade relations have achieved new development and have basically revert to the level before the international financial crisis.

US exports to China continued to grow rapidly, significantly higher than the US's export growth to other major trading partners.

China has put forward proposals for greater financial, financial, economic and trade cooperation between the two countries, and hopes that both sides will work together to do the work well.

Obama said that the United States is committed to strengthening economic and trade cooperation between the two countries so as to achieve mutual benefit and win-win situation.

China pays attention to beauty

Hu Jintao said that China is willing to continue constructive communication with the US side on economic and trade issues and find ways to properly resolve differences.

The decision of the Chinese side to further reform the RMB exchange rate formation mechanism in June this year is made under the background of a very complicated situation in which the economy and employment are faced. It is not easy.

China's determination to push forward the reform of the RMB exchange rate formation mechanism is unwavering. But the reform needs a good external environment and can only be promoted step by step.

It is hoped that the US side will take concrete actions to relax restrictions on the export of high-tech products to China as soon as possible, and give China a fair competitive environment for investment companies in the US, and work together with China to promote healthy and stable development of bilateral economic and trade relations.

China is concerned about the recent quantitative easing monetary policy of the United States, and the US side's policies should take into account the interests of emerging market countries and developing countries.

Obama said that President Hu Jintao will pay a state visit to the United States next year to ensure that the visit is a top priority for us China relations and US diplomacy.

Hu Jintao said that the two sides should create a good atmosphere, create favorable conditions and make joint efforts to ensure the success of the visit, and convey the information that the two sides are committed to strengthening Sino US friendly cooperation and play a constructive and responsible role in the world to the two peoples and the international community.

The two sides also exchanged views on the situation on the Korean Peninsula and the Iran nuclear issue.

President Hu Jintao also met with Russian President Medvedev and South Korean President Lee Myung-bak in Seoul on the 11 th.

G20 Seoul summit officially opened

South Korean President Lee Myung-bak held a welcome reception and a dinner at the South Korean National Central Museum for the 11 summit and representatives of the Seoul Summit on the evening of two, marking the beginning of the two day G20 summit in Seoul.

The theme of the Seoul summit "spanning crises and growing together" is the first group of twenty summit held in Asian and emerging market countries.

The summit will focus on the current world economic situation, strong, sustainable and balanced growth framework, international financial institutions reform, international financial regulation, global financial safety net and development and trade issues.

No consensus has been reached between the focus parties on exchange rate and current account restrictions.

Differences in the draft Seoul declaration

The 12 leaders of the G20 will discuss the issues of macroeconomics, foreign exchange, financial safety network and financial reform at the COEX Convention and Exhibition Center.

Lee Myung-bak plans to publish the Seoul declaration at a joint press conference held at 4 pm on 12, at the COEX Convention and Exhibition Centre.

However, there were still major differences in the draft declaration.

On the afternoon of 10 July, the Vice Finance Ministers of the group of twenty and the G20 negotiators gathered at the COEX Convention and Exhibition Center of the main venue of the summit to coordinate and revise the contents of the draft Seoul declaration.

It is learnt that although there has been agreement on financial regulation reform, global financial security network, development agenda, and the reform of international financial institutions, there are still major differences in terms of exchange rate and restrictions on current account.

Russia, India and France clearly oppose restrictions.

Because of the larger differences, the meeting failed to reach an agreement on the above issues.

The United States has put forward specific goals in terms of current account receipts and expenditures, controlling the current account surplus and deficit margin to around 4% of GDP, but no consensus has been reached. Therefore, the summit may not discuss specific targets, but may only reach a consensus on the timetable for discussing the issue.

It is reported that South Korea's "Seoul declaration" draft re emphasizes the "market determined exchange rate", while increasing the Korean President Lee Myung-bak's "solution to the problem of unbalanced global economic development" and so on.

However, many analysts believe that in the case of the second round of quantitative easing monetary policy implemented by the Federal Reserve, the Seoul declaration again emphasizes that the so-called "market determined exchange rate" looks pale and powerless.

According to the conference procedure, Yin Zengxuan, chief executive of the Korean Ministry of finance, met with the finance ministers of the G20 members on 11 th, and finally deliberated and coordinated the contents of the "Seoul declaration" discussed by the Vice Finance Ministers, and then submitted them to the summit, which was evaluated by the G20 summit of Seoul on the 12 th.

The Fed voted in the first billion dollars in the first month.

Its quantitative easing policy brings discord to the summit.

The US Federal Reserve Committee announced on the 10 day that it launched a new round of quantitative easing policy to invest $105 billion in the first month of the purchase of treasury bonds.

The statement said that the Federal Reserve will start its 18 open market operation from November 12th to December 9th.

Until next June, in addition to the original plan to buy $600 billion treasury bonds, the Federal Reserve is expected to withdraw 250 billion to $300 billion of proceeds from residential mortgage related securities and institutional securities investments, and then invest in treasury bonds.

The first open market operation in the first month included the $75 billion monthly Treasury purchase amount expected by the market, including the $30 billion bond purchased with investment income.

After the Fed issued a statement, treasury bond prices rebounded.

The US government previously sold $16 billion of treasury bonds, resulting in a 30 year Treasury price reduction and bond interest rates up to 4.32%.

Alan Greenspan, former Federal Reserve Chairman, said in a 11 day article in the financial times that the US dollar is losing its way and the US is "implementing a weak monetary policy".

Greenspan's article was published several hours before the summit of the group of twenty Korea Seoul.

The Fed's disagreement over the summit was ignored by other developed and emerging economies against the resumption of quantitative easing.

There is news that the Fed is considering launching the third round of quantitative easing.

Multinational officials and financial officials point out that the Fed's reopening of banknote printing machines aims to suppress the dollar exchange rate and boost exports, while driving the influx of hot money into emerging markets.