JS-1483: Statement by Treasury Secretary John W. Snow <script type="text/javascript"> var wmNotice = "UNT Web Archive - External links, forms, and search boxes may not function within this collection. Url: http://ustreas.gov/press/releases/js1483.htm time: 10:32:05 Sep 25, 2008"; var wmHideNotice = "hide"; var contextRoot = "https://webarchive.library.unt.edu/eot2008/"; </script> <script type="text/javascript" src="https://webarchive.library.unt.edu/eot2008/js/disclaim.js"></script> <br>on U.S.-China Trade Relationship



	FROM THE OFFICE OF PUBLIC AFFAIRS April 28, 2004 JS-1483 Statement by Treasury Secretary John W. Snow on U.S.-China Trade Relationship The Bush Administration maintains that the international trading system works best with free trade, with the free flow of capital and with currency values set in open, competitive markets. China now holds a significant place in the international trading system. It is best for the global system, for the United States, and for China itself, for China to move to a flexible exchange rate regime. Importantly, China acknowledges this and is making progress toward this goal. The Chinese are actively taking steps to modernize their financial infrastructure with the goal of achieving a flexible currency. For example, the Chinese have recently taken measures to liberalize certain capital flows, they are recapitalizing their banks, and they are working to develop a currency derivatives market. The Bush Administration has been actively engaged in promoting these steps with the Chinese. I have held extensive meetings and consultations with the Chinese economic team both here in Washington and in Beijing. One outcome has been the establishment of the Technical Cooperation Program between the U.S. and China. This program is specifically created to cooperate on issues that will facilitate a move to a market-based exchange rate regime in China. Furthermore, I have recently appointed Ambassador Paul Speltz as my direct emissary to Beijing to maintain regular engagement on this issue. In accordance with prior plans, Ambassador Speltz and Treasury Under Secretary John Taylor will travel to China early next month to continue these discussions. An important component of our efforts has also been to build international support for our policy. We have worked with the finance ministers in the Group of Seven nations to promote a common view that major economies like China should adopt flexible exchange rates. This view is clearly articulated in the communiqués that have come out of our recent meetings. With steady progress clearly being made, the most effective way at this time to achieve the goal of a flexible, market-based exchange rate in China is to maintain the persistent engagement we have established rather than through a trade petition. Economic isolationism does not work and it’s a path we will not follow.