Despite facing pressure, Obama unlikely to push China too hard after Beijing signals shift

Nov 15th, 2009 - Los Angeles Times

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Despite facing pressure, Obama unlikely to push China too hard after Beijing signals shift

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.

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