• Thu
  • Aug 21, 2014
  • Updated: 5:48am
BusinessEconomy
CHINA

China shouldn't delay on economic reform, US Treasury chief Jack Lew says

PUBLISHED : Sunday, 11 May, 2014, 5:26am
UPDATED : Sunday, 11 May, 2014, 5:26am

United States Treasury Secretary Jack Lew said he would call on Chinese leaders this week to let markets determine the value of the yuan and to avoid postponing measures to overhaul their economy, even as growth falters.

"They obviously have to worry about their short-term economic situation," Lew said in an interview airing this weekend. "What they can't do is treat the long-term reforms as something they can just put off. They need to be serious about it."

Lew, who will meet Chinese officials on Tuesday in Beijing, said that while China had made some progress in loosening restrictions on its currency, "we've seen some very negative movement in the exchange rate in recent months".

Lew said he had been telling his counterparts to avoid becoming an alternative source of funding to Russia as US sanctions there begin to bite.

"We've been making the case consistently, wherever we go, that it's unacceptable for Russia to violate Ukraine's sovereignty," he said. "And that when we take actions and other countries in the world take action, it is important for there not to be backfill."

Russian President Vladimir Putin plans to open the door to Chinese money as US and European sanctions over Ukraine threaten to tip the economy into recession, two senior government officials said.

The move would roll back informal limits on Chinese investment as Russia seeks to stimulate growth, said the officials, who have direct knowledge of talks and asked not to be identified because the information wasn't public.

On the strategy for imposing sanctions against Russia, Lew said the administration had "made very clear that our goal is not to go to the maximum degree that one can to hurt the Russian economy. It's to get President Putin to change Russia's policy."

"We have been moving step by step and in a very surgical way," he said.

"The goal here is not to hurt the European economy, the American economy. It's not to hurt the Russian people."

While US officials have discussed targeting entire sectors of the Russian economy, they have so far only applied sanctions against 45 individuals, including gas giant Rosneft's chief executive officer, Igor Sechin, and 19 entities, including SMP Bank and Bank Rossiya.

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hongkiejj@malaysiaboleh
The last thing china need is a lecture from a g.weilo on econs and it's direction.
Japan unilateral devaluing their currency was applauded and china slight drop is unhelpful ....
Lew should be in Japan n lecture abe on tpp. ..
Rambo
It is even more necessary for he US to reform itself. Stop the War on Muslims, stop stirring up trouble in Ukraine and Asia, stop supporting the fascist regimes in Japan and the Philippines. The US should also respect the human rights of the Hispanic, Black and other minorities including American Indians. Regime change is really required in the US.
koolsep1
My prediction is that US and European sanctions will fail and actually backfire on them.
craigmount
x
ejmciii
No one can tell China anything. 25 years out of the pig swill and they know everything. Well they know how to make sure princelings have Audis, how to doctor financial results and how to suffocate growth by making sure all the money stays in SOEs that keep the corruption flow alive which is the life blood of the communist party. You guys are great. I seldom get such a good laugh. Now don't you have some boots to lick?
allan94
ejmciii
china may be screwed up, as u said, but the last person to judge china is the usa. its like a **** despising a rapist. its like the brits telling everyone to have democracy while it possesses so many colonies.
XYZ
The current U.S. administration is in no position to be dispensing economic advice to other nations. A little humility on their part is called for. Of course, that is hardly the hallmark of the Obama administration. Hence Mr. Lew's inane remarks.
A Kuro
US Treasury chief Jack Lew is another American **** ball. The US is making trouble for China by stirring up trouble for China in China's own backyard. The US doesn't have any good-will towards China and is stooping very low by supporting the Devil Worshipping Shinzo Abe Regime in Tokyo and supporting the Lunatic Aquino Regime in Manila. And as for Sino-Russian relations this idiot have no business telling China not to invest in Russia especially at the time when Russia needs it the most because of US and European sanctions. It would be better for China to move her massive investments in very low-yield US treasury bonds into other assets that can bring China greater returns.
allan94
just what we need.! advice from a country that spawned lehman bros and arthur andersen.!
its like having a broke guy giving a rich guy financial advice. Confucius says, " pls give advice only when u r asked".
A Kuro
The US accountants can cook their books better than the Chinese who are amateurs. Remember Enron, Assets Backed Securities, CDOs, etc.

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