Geithner to visit China for economic talks

United States Treasury Secretary Timothy Geithner will visit China in coming weeks to address persistent, trade and investment concerns.

He will be in Beijing from June 1 to June 2 to meet senior Chinese officials for discussions on "a range of issues of importance to both countries", his office said.

No details of the trip have been provided so far but analysts said Geithner will have to grapple with a plethora of issues, ranging from US suspicion China is manipulating its currency for trade gains to Beijing openly questioning the dollar's special status as the leading global currency.

"I think Geithner would like a constructive tone and does not want the headline to be 'China and the US disagree on everything'," said Brad Setser, a former Treasury official.

Setser, now an analyst at the Council on Foreign Relations, does not expect much movement on the US push for a more flexible Chinese currency aimed at addressing "global imbalances". "He will make that argument obviously but in the very short run, they have an important desire not to have abrupt changes," he said.

Just a day after the announcement of Geithner's trip, US lawmakers unveiled a plan to retaliate against China and other countries that allegedly manipulate their currencies to snare an edge in international trade.

"The time has come for Congress to stand up for American workers and not allow China to run roughshod over the American economy.

"With this legislation we will finally force China to stop cheating and level the playing field for America's manufacturers," said Republican Representative Tim Murphy.

The plan backed by both Democrat and Republican lawmakers aims to use US anti-dumping and countervailing duties to strike back at prolonged currency manipulation that lawmakers say make Chinese exports more competitive.

Instead of lecturing on currency, Geithner may have to instead assuage China's concerns about US monetary and fiscal policies aimed at battling the current recession but which Beijing fears could drive down the value of dollar-based assets.

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