China and US talk on sidelines of G20

America and China’s leaders met for the first time on the margins of the G20 summit, and the two men have agreed to establish a “US-China Strategic and Economic Dialogue”.

However, the meeting was notable more for what they did not talk about. China’s top banker has suggested replacing the dollar as the world’s reserve currency with some sort of “super-sovereign” money. The IMF has said this is an “interesting” idea, but it was not brought up. The Russians are also keen on dethroning the dollar. Both Barack Obama and his Treasury Secretary Timothy Geithner have rejected the idea. China is the biggest holder of American debt, roughly 700 dollars for every Chinese citizen. The first round of the new dialogue will be held in Washington this summer.

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