WASHINGTON/BEIJING - senior officials of the two largest economies in the world meet the week next to try to tackle irritants in their relations, a task which grow more severe as domestic policy to take the stage next year.
The United States and China have a long list of long-standing irritant in both economic and diplomatic, requiring careful management to ensure that no boiled in a dispute which damages a still fragile global recovery.
By 2012, maneuvering for position before the presidential elections of U.S. of and orchestration of the succession of Chinese President Hu Jintao will be concerned with policy makers in each country, so the window to advance a complicated program is relatively low.
Chu Shulong, Professor at Tsinghua University in Beijing, put in custody who, like China, the movements of a successor to Hu, who is retiring as Communist Party Chief in late 2012 and leaves the Presidency in 2013, it will be less flexible in the development of policies.
"For example on the exchange rate, China will focus on stability and economic security, and that could mean that the Government is less likely to move faster on the (yuan)," Chu suggested.
In the United States has pressed China for years to allow the yuan to rise in value. China has allowed more rapid appreciation of the end, but US authorities argue that must do more for Beijing to combat the increase in domestic prices sharply.
Analysts say Monday and Tuesday Strategic once a year and Economic Dialogue is unlikely to innovate on the range of thorny issues - U.S. impatience with the pace of increase in the yuan to the sadness of Beijing to arms sales to the United States to Taiwanwhich complicate bilateral ties.
AIR OUT DIFFERENCES
But the talks, coprésidés on the American side by the Secretary of the Treasury Timothy Geithner and Secretary of State Hillary Clinton and China by Vice Prime Minister Wang Qishan and State Councillor Dai Bingguo, are considered beneficial to the differences in the air and prevent the diplomatic fires.
An innovation of this era is the inclusion of military officials on each side. China's military power is growing and the United States looks with suspicion.
"Both sides say they want to improve relations, but in which the issues of substance, nor wants to make major concessions,", said the Chu. "I fear that the definition features of the relations of China and the United States now: great speech, but not much action.".
For its part, China is probably the concerns of the voice on the current political squabbles in Washington on how best to tighten a budget which is expected to spawn a deficit of $ 1.4 trillion this year. In the balance is a decision to raise the legal limit of 14.294 billion on U.S. debt.
China is a creditor principal of the United States, with a legitimate interest in the safety of its investments.
For the United States, the yuan is once again a centerpiece, while the authorities are also to Beijing pressure on policies, that they say promote China's State-owned firms and to push the world's second economy more open to foreign investment.
"This imbalance of opportunity is an obstacle to the continuous improvement of the business relation in the United States and China, US Secretary of Commerce Gary Locke said Wednesday." It is part of a broader trend of narrowing recently business environment after a long and fruitful period of opening up of China. ?
An official of the US Treasury Thursday described the sweep of economic subjects on the table.
"We will talk about monetary policy, we will talk about the exchange rate policy, we will talk about tax policy, we will talk about policy management of reserves," the official said.
"This is why bring together us people like (President of the Federal Reserve Ben Bernanke and (Chinese Central Bank) Governor Zhou (Xiaochuan) and all the senior officials of both sides to talk,", he added.
YUAN MOVING
China is already taking steps to pack down the rise in inflation. It raised mandatory reserves and has guided the higher yuan.
Last month, the yuan increased by 0.9% against the dollar, marking a pace rajouteraient appreciation of an increase of 0.4% March while the dollar has fallen ground three years against a basket of currencies.
The US Treasury, content to encourage an appreciation of the yuan and maintain remote on more stringent measures, delayed a report April 15 regular practices of key partners, including China's currency.
Progress next week can be even more difficult to do on strategic issues where foreign policy, security issues and regional conflicts come into play.
A Summit in January between the US President Barack Obama and Chinese President Hu has facilitated the tensions that flared year last on the Korea of the North and soothed the American concern of China on the military presence in Asia and arms sales to Taiwan.
But the administration Obama said that he will use the strategic dialogue to press China on the human rights - always a sensitive subject for Beijing, which fears possible disorders inspired by uprisings across the Arab world.
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