Thursday, July 30, 2009

Briefing on the U.S.-China Strategic and Economic Dialogue

David Shear
Director of the Office of China Affairs

Derek Chollet, Deputy Director, Policy Planning, Department of State; Todd Stern, Special Envoy for Climate Change Issues, Department of State; David Loevinger, Senior Coordinator for China, Department of the Treasury

Bureau of Public Affairs

Via Teleconference

Washington, DC

July 27, 2009

Look at what's being said here at the highest levels of U.S./China policymaking. If you don't see that monumental changes are coming--good for China; bad for U.S.--then you are blind!!

"And then there was agreement on both sides that as the economy recovers, and looking past that, it’s very important not only to put in place macroeconomic stimulus, but to put in place structural reforms to rebalance the economy. And on the U.S. side, we talked about how the structure of the U.S. economy has changed, and probably changed fundamentally, how savings are rising, particularly household savings, and the Chinese economy needs to adjust to that and promote homegrown growth, particularly growth that’s led by household consumption."

QUESTION: Oh, hi. Thanks. This is for Mr. Loevinger. You mentioned that you had talked with the Chinese about how the U.S. economy is going to change and probably is going to change fundamentally and that they need to adjust their economy. And I’m wondering what their reaction was to that, if they agree or if they have concerns about what the U.S. would like them to do, which obviously would help us as we try to reshape our economy.

MR. LOEVINGER: Yeah. I’d say on this point, there was notable agreement that the world has changed and we’re not going back to 2006-2007, and that if China wants to meet its growth targets – and again, we think Chinese growth is good for the U.S., it’s good for U.S. companies, good for U.S. workers – but if China’s going to grow, it’s not going to be able to grow by exporting to the U.S., and as far as we can tell, to the rest of the world. China is going to have to promote more homegrown consumption-led growth.

And again, when we went speaker by speaker on the Chinese side, I don’t think anybody disagreed with that assessment. And there was a pretty long discussion about what the Chinese are doing in their fiscal policies, in promoting reform of their state-owned enterprises, in doing some of the same things that we’re doing, like promoting healthcare reform, all with the view to reducing savings and increasing consumption.

We are handing them our wealth and impoverishing ourselves!!!

Save yourself and your family...invest in China because our policymakers are handing them the mantle of economic leadership! They don't even want it...but we are giving it to them!!!

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