The Bush Administration has been trying to get China to adopt a more market driven monetary policy. This recent snippet from AP gives a glimpse of how much authority our suggestions carry:
China has pledged to loosen currency controls, but has not given any timetable, saying that sudden change would expose the country's shaky financial system to excessive risks from outside speculators.
During the talks in Annapolis, Md., China's central bank governor, Zhou Xiaochuan, alluded to such risks by asking about the regulatory mistakes that may have helped precipitate recent U.S. financial troubles.
"China always hopes to draw lessons from the U.S. experience in macroeconomic management and market development," the official Xinhua News Agency quoted Zhou as saying. "However, during this time of discussion, we are also interested in drawing lessons from the U.S. financial turbulence."
Among the questions Zhou said raised was the role exchange rates can play "in maintaining the world's financial stability."
Seems China is more interested in learning from this administration's mistakes than the administration itself!
What's that old Chinese curse about interesting times?
215 DAYS, 10 Hrs, 15 Min, 44.8 Sec - but who's counting?