The recently held Strategic economic dialogue between the U.S. and China has failed to achieve any major breakthrough which was very much probable. However, the recently held dialogue has given a positive signal that China is now at least open for discussion if not exactly to swirl into action. The U.S., in the meanwhile, managed to receive assurance from China to bring currency flexibility in order to close the trade gap between the countries.

The outcome of the talks cannot even be painted entirely grey as these two countries managed to reach consensus on certain points. Both the countries have agreed to take steps to reduce global imbalances through greater national savings in the U.S. and to increase consumption and exchange rate flexibility in China.

Despite of verbal assurance from both sides, the high powered U.S. delegation has failed completely to frame a fixed timetable for the strengthening of yuan. The U.S. was this time around hard pressed by the export lobby of U.S. to resolve this deadlock of currency flexibility with China despite of the fact China would not take decision in hurry. The intensity of the problem can be imagined by looking at the trade deficit between these two countries, which is now set to cross $229 billion.

Nevertheless, at the sideline of the dialogue, both the countries have4 inked a deal, which would enable the two top stock markets of U.S., Nasdaq and New York Stock Exchange to open their offices in China.

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