Analysis Of Financial Problems In The Sino-us Relations

In these years, more and more financial issues were becoming the main topics of China–US dialogues, from the RMB exchange rate to capital market opening up and china's financial system reform and so on. To promote china's currency reform, the United States had used a variety of diplomacy means. They set up the special envoy for china for the first time, and then managed to persuade other developed countries to encourage china raising the RMB, and even the IMF turn to their sides. While at last, china reformed their currency system, the capital market opening up became the new topic between China and the United States. But why the financial issues not only the trade became the most important topics of China-US economic relation? The answer is complicated. For Bush administration, his tax-cut plan and the Iraq War brought him large deficit during last eight years and his government were under increasing pressure. They had to ask"China issue"for help. On the other hand, they can also bring a lot of interests to there financial system by promoting china's capital market opening up and financial system reform.