Money Talks

Larry Summers Heads to China

Obama's economy guru will push action on yuan.

In a somewhat atypical Labor Day vacation, Obama’s chief adviser on the economy, Larry Summers, departed today for a three-day visit to China to press the country on a number of fiscal policy issues. Joined by Deputy National Security Adviser Thomas Donilon, Summers will meet with Chinese Vice Premier Wang Qishan and other high-ranking officials to “discuss a wide range of issues touching on bilateral and international issues," the White House said. Obama is urging China to set the foreign exchange value of its yuan currency by market forces—a response to U.S. lawmakers, many of whom remain concerned that the yuan’s unfairly low levels against the dollar are dampening economic growth. Samuels International Asia expert Chris Nelson is among them, asking Summers and Donilon “to make sure [Chinese President] Hu & Co understand that Congress has run out of patience on the RMB valuation issue.”