Thursday, June 19, 2008
U.S.-China Financial Pact?
All of this is predicated on acceptance of a quid pro quo relationship, with both sides granting and receiving concessions.
What will be interesting to see is the reception the Chinese delegation receives on the Hill. My worry, as I've been expressing as of late, is that Congress tends to see agreements with other states not as win/win scenarios, with both sides engaged in give and take, but as magnanimous concessions of the United States.
Hopefully, a financial pact between Beijing and Washington could begin to bring political clarity to the economic relationship; for too long, both sides have allowed a major imbalance to develop where the economies are increasingly intertwined and interdependent but without a sufficiently robust political framework in which this relationship can be mediated.
Senior Democratic lawmakers immediately criticized the plan, warning the Bush administration that they have serious concerns about moving forward with investment talks in the waning months of the Bush term.