China Accords Yielding Tangible Gains, Treasury’s Brainard Says

The Obama administration’s relationship with China is yielding “tangible, significant gains that will benefit the U.S.,” the Treasury Department’s top international official said.

Still, commitments made by China, including at talks between officials of the world’s two largest economies in Beijing this month, “are not enough,” Lael Brainard, the Treasury’s undersecretary for international affairs, said in testimony for a hearing today before a House Financial Services Committee panel.

Brainard said agreements at the May 3-4 Strategic and Economic Dialogue included a pledge by China to reduce tariffs on consumer goods imports by the end of the year.

China’s decision last month to widen the yuan’s trading band will help “promote rebalancing and financial reform” if it’s “implemented in a way that enables the exchange rate to reflect fully market forces,” Brainard said.

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