Germany’s pain is China’s gain at G-20
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China has been having an uncomfortable time at the G-20 meetings lately. Not so at last weekend's informal gathering in Mexico, when concerns about the yuan ( CYB , quote ) took a back seat to pressuring Germany about European bailouts.
China is taking advantage of the respite, and has indicated that its currency will be plateauing in 2012 and 2013. It's also shown a generous hand to the Europeans, offering to support the IMF in its efforts to battle the European debt crisis. G-20 officials say Beijing may ultimately contribute as much as $100 billion to the bailouts.
U.S. Treasury Secretary Tim Geithner praised Beijing's economic reforms. "China has played I think a really responsible, stabilizing role, despite its relative newcomer status," he said.
Germany could only wish for such gentle handling. It went to Mexico urging G-20 nations to find fresh money for the IMF's crisis fund. It got replies like this email from Jim O'Neill, chairman of Goldman Sachs.
Europe "doesn't really need any outside money," O'Neill wrote. "It needs their own policy makers, especially Germany, to show leadership."
Ouch.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
