Issues between US and China that were raised during the recent G-20 summit in Seoul reemerged at the Asia-Pacific Economic Cooperation (APEC) summit taking place in Japan.
While China maintained its position that the US Federal Reserve aimed to bolster exports by weakening the dollar through the easy-money policy, US reminded China that the yuan is undervalued, giving the Asian giant an export advantage, that it tries to deny to the US.
Furthermore, US President Barack Obama issued warnings to countries that were relying excessively on exports for economic growth, China included.
On the other hand, the Chinese President Hu Jintao reasserted his country’s intention of reforming its exchange rate system.
The US president’s national security adviser Tom Donilon further added, during a press conference, that China needed to show progress in this particular reform before the Chinese president’s visit to Washington in January.
Aside the Sino-American head bumping, a continuation of G-20 discourse, the APEC participants agreed that while the world economy was showing improvement, it was still fragile. State debt poses risks in several countries, with Ireland as example. Unemployment and the state of the financial sector are still causes for concern.
Regional tensions did not fail to show. China and Japan held meetings to calm spirits in the matters of rare-earth resources and gas fields. The host country also tried to ease tensions with Russia over an island claimed by both countries. According to the Russian foreign minister, the two countries should make economic recovery their priority.
APEC is focusing this time on developing a collective growth framework as well as the creation of a free trade agreement for the region based on existing agreements.
