The Chinese answer back : Not Manipulating the RMB

U.S.China Relations MOOD : CAUTION AHEAD

The AsiaBizBlog shows the Renmibi manipulation comment didn't go unnoticed and picks up this article from the Wall Street Journal, published a mere 8 hours later after the news of Thimothy Geitner's written comment (discussed here).

"Sure enough, the Chinese have fired back" and answered the RMB fixing accusation.

"A Chinese ministry Saturday strongly denied Obama administration claims that
China "manipulates" its currency, as the first contact between the new administration and China takes a markedly sour tone. "

The quoted article, published in the Wall Street Journal, says "a top official in China's central bank said the charge that Beijing manipulates its currency was inaccurate and implied there were bigger issues to address in the global financial crisis."

In addition, the comment was not taken lightly, as it was written and not verbal - a clear " a serious view of intent." The journalist adds that while not necessarily surprising, given Obama's stances, "Mr. Geithner's comments marked a significant escalation in U.S. criticism of China's exchange-rate system."

Way to go as the first communication between the new US government and China!

The article then talks about how China has been managing its exchange rate and its interactions with the dollar. If you'd like to read more on that, click here.

Backgrounder: Xinhua says Washington intent on improving US-China economic ties

Mood today in U.S-China relations? WOULD LIKE TO BE GOOD.

If you read Xinhua.net's Window on China today (which says their source is chinaview.com.cn), you'll see the US is trying to improve U.S.-China relations... somewhat.

New treasury secretary designate "Timothy Geithner vowed in a document released on Thursday to deepen U.S.-China economic relationship which he termed as "one of our most important relationships." says Xinhua.

"Geithner said the Obama administration looks forward to a productive economic dialogue with the Chinese government on a number of short-and long-term issues."

But the good intentions don't last long : he attacks on the currency issue:

"President Obama -- backed by the conclusions of a broad range of economists -- believes that China is manipulating its currency," he said in the document, adding Obama has pledged as president "to use aggressively all the diplomatic avenues open to him to seek change in China's currency practices."

And tries to make things better by saying this :

"The (Chinese currency) Yuan is certainly an important piece of that discussion, but given the crisis the immediate focus needs to be on the broader issue of stabilizing domestic demand in China and the U.S."

Will that be enough to keep U.S-China relations good despite the ongoing attacks on the renminbi?

Others aren't so touched by Obama's inaugurational speech

And those would be... the Chinese censors, who found something to censor in the 44th inaugurational speech.

Why would they do that? And what did they find to censor?

The answers are given by Business Week, in today's "Eye on Asia" column .
Here's how they put it:
"Why in the world would anyone - even a Chinese censor - be so stupid as to censor the inauguration speech of the new American president, especially one so popular overseas as Obama?"

They are basing themselves on James Fallows's The Atlantic blog post to answer this and this is what he has to say :

James Fallows : “the people in charge of China’s propaganda apparatus are among the least worldly and most rigid-minded people in the entire country, with absolutely the least feel for how people in other countries might react or think. So apparently some of these ignoramuses considered it a good and prudent idea to cut off Obama — even if the vast majority of their fellow citizens would consider such paranoia to be extreme and bizarre. Also, within a part of the government where orthodoxy is everything, an official takes no risks by being too hard-line, but could get in trouble by being too permissive.”

So, as the Business Week blog post puts it, "the censors’ knees jerked and they cut". "Rules are rules".

Chinese Americans touched by Obama's speech

U.S China Relations Mood : HOPEFUL

Obama's inauguration speech highly touched Chinese Americans throughout the US, who welcomed "his resolution to dialogue and work with countries that have different points of view." says New America Media

The Obama mania continues - Inauguration day!

Barack Obama is being sworn in as the 44th President today...

Wonder how that will bode for US-China relations?

Attracting Chinese business and investment to San Francisco still a priority

As always, the SF chamber's mission is to attract, develop and retain business in San Francisco.

SO....
Despite these trying times, attracting Chinese business and investment to San Francisco is still billed one of the city's key initiatives to implement an economic stimulus plan - basically, jump start the state's economy again, something that is badly needed as the State has had to start giving out IOUs instead of actual money (See this article from the LA times... and many others on google).

At least that's what the SF Chamber says, both here :

The Chamber is vigorously pursuing key initiatives to improve the city's business vitality: Economic Stimulus : " The Chamber continues to encourage the city to adopt a long-range economic plan and is working with the city and business community on adoption and implementation of an economic stimulus plan. [...] In collaboration with the Mayor's Office and the San Francisco Center for Economic Development, the Chamber in 2008 launched the ChinaSF initiative to attract Chinese business and investment to San Francisco."

and in January's newsletter, in L.Wade Rose's address - he is the newly appointed SF Chamber Chair, by the way - :

"Our first priority will be to work with the city on the adoption and implementation of an economic stimulus plan. The plan as outlined by Mayor Gavin Newsom includes: Accelerating capital spending, keeping local dollars, increasing foreign investment and reducing the costs of doing business in San Francisco. For example, the Chamber is working with the Mayor’s Office and the SF Center for Economic Development on ChinaSF to attract Chinese companies and investment dollars to San Francisco – and has already scored two major Chinese companies, Trina Solar and China Daily newspaper."

It's all fine and good... but that's old news. WHAT are you doing exactly? Any (new) results yet?

Why a ChinaSF in San Francisco? Part Three

The SFCED section about the ChinaSF provides more insight on why San Francisco and a ChinaSF office are a good match.

You may have already read the reasons for that listed here, here and there. Here's more reasons.

From the Why San francisco? page on the SFCED website :

"Combined with a long-standing economic and cultural history with China, San Francisco offers an unbeatable combination of economic resources and strengths to potential Chinese partners. San Francisco is a leader in innovation, intellectual capital and offers the world's best employees because of its unparalleled quality of life.

Top Global Talent." Key words here are best educated city, culturally diverse, high productivity rate, large amount of patents, highly-qualified, bi-lingual professionals like no where else (except maybe for the Austin, Texas, area, as it seems to be the only place in the US left where they're still offering jobs), welcoming atmosphere.

"Vibrant Business Economy." Thriving sectors such as biotech, cleantech... "Supported by access to the largest venture capital investment community in the United States, world-class business services and the most educated, diverse workforce of any major city"

"Innovation." Key info : cutting-edge businesses in innovative fields such as biotech (that's right,work that angle, it works!), clean technology, and more. "San Francisco is not only the gateway to China - San Francisco is also the "front door" to Silicon Valley and all of the incredible technology companies that thrive in America's epicenter of innovation. "

"Established Chinese Community. Because more than 25% of the City's population is of Chinese ancestry".

"Local Government." as in they support and welcome Chinese business partnerships.

Business Environment. as in it's GOOD.

Location. San Francisco has long been at the center of global trade. Well connected, international gateway, and so forth.

For more details, check out the linked pages.There's more to read on subjects such as :

• The Chinese Connection
• Cleantech: Our Future's Energy
• Global Talent
• International Tourism
• Port of San Francisco
• San Francisco International Airport (SFO)
• Strategic Entrepreneurial Partners
• Land Transport

Enjoy!