The fact that the Coca-Cola ( see Reuter`s this morning ) deal seams to be falling apart in China as well as the problems american bank are having to make any kind of deal in China recently ( see Financial Times march 15th ) seems to indicate not only That the chinese govt. is mad at Geitner for comments he made on it`s job confirmation, about renmedi valuation as expert say, but even more in my opinion about buy america clause that hempers chinese export to the U.S.
As newspaper report this morning IMF revise growth expectation in China this year to 6.5% , 1.5% less then chinese govt. expectation. To China`s govt. 8% seems to be a minimum growth in order to avoid political unrest and stability.
Seems only natural that they expect the U.S. to respect global economic agreement that they were the first to push over the last 30 years especialy at a time when they rely so much on China supporting treasury. As i said elsewhere it`s no surprise the chinese are moving from long treasury to short term treasury bonds, they expect some return from the US and restraining access to the american market won`t do it .
Corporate america is crying out loud about the way their government is changing the rules retroactively about their bonuses while some if no most of them are the culprit of this international crisis jeoperdising the lifestyle and even the very lyfe of millions of poorer people across the world , maybe tjey should be more vocale about about their government changing global economic rules .
Egotistic reactions such as protectionism might be the rule of tumb in times of fear, but it`s the same as hiding your head in the sand , it could only spell disaster . For us in Canada it would be, since China is our market of the future for commodities, while the US is our main export market for 75-80% i sure hope the G20 will dispell such dark heavy clouds .