U.S. Export-Import Bank Takes on China
In preparation for Chinese president Hu Jintao's visit to the White House next Wednesday, the Obama administration has challenged China in quite a few ways. And, as part of the Administration's plan to double U.S. exports within the next five years, the U.S. Export-Import Bank is taking on China in an attempt to boost exports by matching China's cheaper financing terms for the first time in order to urge Pakistan to buy 150 GE locomotives.
According to the Wall Street Journal:
The financing terms for the $477 million deal required the U.S. to work with the Organization for Economic Cooperation and Development, a multilateral organization that monitors export-financing terms by developed countries—but not by China—to attempt to provide a level playing field.
So why the decision to get aggressive when it comes to exports?
"They're winning deals in part because they're not playing by the rules," Ex-Im Bank Chairman Fred Hochberg said in an interview. "This says: We're not going to sit idly by and let you buy business. We wil compete and make sure you stand toe to toe with American companies and American workers."
We'll see how these moves by the U.S. will unfold in the much-anticipated meeting between the two leaders.
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