Obama Unlikely To Push China Hard On Currency

MARTIN CRUTSINGER

WASHINGTON (AP) — In his visit to Beijing this week, President Barack Obama is expected to tread lightly when pressing China to let its currency rise against the dollar.

Doing so would benefit the U.S. economy by making American-made goods cheaper in China, but Obama is reluctant to upset Beijing.

China is the No. 1 lender to the U.S. at a time when the latest annual budget deficit hit a record $1.42 trillion. That makes for a lot of Treasurys to be sold. China has expressed concerns that the falling dollar threatens the value of its existing U.S. holdings.

The United States also needs China's help in dealing with foreign policy threats. Those include curbing the nuclear ambitions of North Korea and Iran.

There's another reason for a gentler U.S. stance: Analysts believe China already signaled last week that it was preparing to let its currency rise against the dollar. That shift could eventually aid U.S. manufacturers. It might also feed a U.S. economic rebound.

But China is also applying some pressure on the U.S. about its currency.