China and the US have pledged around 15 Billion euros to boost global trade. The announcement came despite talks being overshadowed by tensions after China criticised excessive consumption in the US for the financial crisis.
US Treasury Secretary Henry Paulson said the aid would help tackle turmoil enveloping world markets. ‘‘To support trade flows during this period of financial turmoil, the US and China announced today that our two export-import banks will make available an additional USD 20 billion for trade finance, particularly for creditworthy importers in developing economies,’‘ said Paulson.
Importers, struggling to find credit to buy goods, will receive the bulk of the aid. As China voiced concern over Washington’s management of the world economy, friction over exchange rate policy also bubbled to the surface.
US officials are fretting China might be losing the stomach to let its currency keep rising, which they say gives Chinese exporters an unfair trade advantage.