G20 Gives Emerging Nations Greater Voice

China, for its part, is afraid that the dollar will decrease in value because of so much easing, while the concern of the U.S. is China’s refusal to allow its currency to rise to a level that demonstrates its economic power and that would allow some reduction in its trade imbalance with the U.S. In fact, Treasury Secretary Tim Geithner (left) was expected to continue to press China to strengthen the yuan during talks with China’s vice premier Wang Qishan in Qingdao on Sunday. The two met briefly during a stopover at the airport in Qingdao after Geithner attended the G20 meetings.

The U.S. Embassy e-mailed a statement regarding the meeting that said only, "The two sides exchanged views on U.S.-China economic relations and the preparation for the (G20) Leaders' Summit in Seoul." It did not give further detail. Geithner had delayed a twice-yearly report to lawmakers in the U.S. about whether China manipulated the yuan for advantages in trade; instead, he had pressed the issue at the meeting in Gyeongju and planned to further do so in Seoul at the G20 leaders’ summit.

Perhaps the big news coming out of Gyeongju, however, is that Europe will give up two seats on the IMF’s 24-seat executive board and more than 6% of the IMF’s quotas will shift to emerging economies whose growth has not been reflected in their status within the IMF. China will become the third most powerful member, rising from sixth and moving ahead of Germany, France, and Britain, and India will also advance.