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Chinese Premier Wen Jiabao answers Obama's with tai-chi
U.S. President Obama met with Chinese Premier Wen Jiabao yesterday.
(Wen Jiabao) "President Obama and I just discussed the many ways we could work together."
"This is one of my purposes for this visit to the U.S."
These two leaders complimented each other,
but they didn't speak about China's renminbi exchange rate reform.
According to U.S. officials, however,
the two had an intense discussion behind closed doors.
Obama is said to have been aggressive about the renminbi exchange rate reform,
otherwise the U.S. would have to find ways to defend itself.
But Wen found ways to avoid the subject.
He remained calm and patient, as if practicing tai-chi.
All he said was that China would continue to look into the exchange rate reform.
He urged the U.S. to not make this into a political matter.
He also said the high unemployment rate in the U.S. was not caused by the Chinese exchange rate.
Ever since the renminbi reform on July 21, 2005,
renminbi grew from 8.2765 to 1 dollar to the current rate of 6.7045 to 1.
U.S. Congress is about to make a proposal today.
A tax on Chinese products may be imposed if China does not fix the exchange rate.
(Wen Jiabao) "If we do accordingly to the wishes of certain members of the Congress to increase the rate from 20% to 40%,"
"then many businesses in China may be forced to fold."
It seems that both China and the U.S. are looking after each's own interests.
Many more discussions may be ahead.
Apple Daily Action News reports.