G20 to China’s Hu Jintao: Bring Cash!

Australia’s got a new reality show to fascinate over. Called “Border Security” this profiles real-life customs and immigration officers on the beat. Whoever thought standing by an airport luggage carousel would make gripping national television?

Well before reality came to Australian Customs, there were cases where they would arrest travelers coming in from China. They weren’t smuggling drugs or rare jewels. Instead they were carrying suitcases of cash. Apparently they weren’t aware you needed to declare amounts over $10,000.  These investors were coming to Australia to buy houses.

Yesterday China’s President Hu Jintao flew into Mexico. He is at Los Cabos to attend the G20 World Leader Summit today and tomorrow.

Can I help you with your suitcases?

All newspapers report a G20 summit that will be dominated by talk of Greece, Spain and the future of the Euro. That doesn’t please China. Given the new world order, more attention at these meetings need to be devoted to developing nations – like China.

“We should continue to give high priority to development and promote growth of developing countries so as to increase total global demand,” said Hu in a written interview with Mexico’s Reforma newspaper.

And these developing nations should have a greater say in world affairs. After all, if China is going to contribute to the IMF (International Monetary Fund) it should have a say as to where the cash goes. To date China has not revealed how much has been given to the IMF. Officials say they will reveal the amounts “when they are ready.”

But that doesn’t sit easy with the USA. According to Ding Chun, an expert in European affairs at Fudan University, China will face resistance to gaining greater power in exchange for propping up Europe’s economies.

“The US, though it does not want Europe to collapse, will not give up its leading role in the IMF just for China to make more contributions,” said Chun (Source: SCMP)

Given the likelihood the G20 will fail to make any meaningful headway – and the tempting location of the conference in a Mexican seaside resort – I like the advice from Simon Nixon in The Wall Street Journal:

“Los Cabos in Mexico is by all accounts a delightful place: Chic hotels, excellent beaches and fine weather at this time of year. World leaders descending on the resort for this week’s G-20 summit should make the most of what it has to offer. Nothing they discuss is likely to make any difference to the crisis raging in the global economy.”

Perhaps Hu Jintao is better off checking his suitcases with the Bell Captain then heading off to enjoy the beaches of Cabos. I’m sure jet-boat rental companies take Renminbi.

Letting off Steam in Los Cabos, Mexico

One thought on “G20 to China’s Hu Jintao: Bring Cash!

  1. How polite and nice were the Australian airport security guards…..and how cute are those dogs. A really interesting film and embarrassing for the ones caught. Thousands of dollars for bird spit???????? go figure. j

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