This article is by Sewell Chan, a journalist for The New York Times covering the G20 Summit in Seoul, South Korea. The G20 summit is a gathering of the leaders and finance ministers of 19 of most affluent countries in the world, including the European Union. From November 11-12, the G20 leaders have discussed the economic troubles facing the world community, as well as other financial issues on the table.
This article concerns a statement given by US President Barack Obama on November 12, the last day of the summit. Obama reportedly criticizes China for deliberately undervaluing its currency, the renminibi, in order to to promote its own exports. Obama blames this practice as a cause for the financial uncertainty the globe is facing and calls for China's leaders to act more "responsible". The article goes on to discuss how this adds to the current tension between the two nations, how it could further complicate relations in an upcoming state visit by the Chinese president, and other matters debated, resolved, or unsolved during the two day summit.
The evaluation of the shaky relationship between the US and China is an interesting one. As now both America and China are equal partners on the world stage, any source of conflict between the two is certain to have ripple effects around the globe. The currency war being waged does have roots in China's currency practices, but it is peculiar that why President Obama would take such a harsh tone in public, especially before a state visit by China's leader. It is possibly supposed to be a show of force on the part of the United States and Obama, to show that it still is a powerful player despite the rise of India and China as economic powers.
Well, enough said. Here's the article
http://www.nytimes.com/2010/11/13/business/global/13group.html?pagewanted=1&_r=1
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