Sunday, May 8, 2011

US-China talks the bumpy road face (AFP)

WASHINGTON (AFP) - the United States China approaching high-level talks in Washington this week on a foot more even reflecting the rising power of the Asian giant, but expected a bumpy road.

At the annual strategic of the United States and China and Economic Dialogue meetings, senior officials are expected to discuss the way forward and stone of stumbling blocks, such as human rights, trade imbalances and undervalued Chinese currency.

Talks two days only open Monday come in a series of battles between the larger economies of the world which augurs unlikely to suddenly snap in much closer ties.

At the United States made no tangible progress in a dialogue of the human rights with China in late April in Beijing, in which the US Envoy, Secretary of State Deputy Michael Posner, accused "serious decline" China on human rights.

China rejected the criticism, reaffirming that the treatment of dissent was his own business.

Kurt Campbell, the Under-Secretary of State for Asia, said last week that the United States would raise problems of human rights this week "directly, honestly and openly" talks with Chinese official guests.

But China has set a red line.

Vice Foreign Affairs Minister Cui Tiankai said Beijing was "willing to have an exchange of views with the United States and interact with them based on equality and mutual respect."

He warned: "I think that it is recommended for the United States more attention to the development of China in terms of the human rights, rather than be concerned about individual cases."

Human rights groups will be either to keep an eye attentive on how loudly to the United States raises its concerns.

"The Chinese Government took note that American officials and organizations do and don"? t talk about the human rights, thus showing the commitment requires a general coordination, "warned Sophie Richardson, Director of advocacy at Human Rights Watch Asia."

The third annual dialogue will be led by the Secretary of State Hillary Clinton and Secretary of the Treasury Timothy Geithner on the American side. Their Chinese counterparts are Vice Prime Minister Wang Qishan and State Councillor Dai Bingguo.

A sign of warming relations of defence, military representatives will take part in the talks for the first time.

The United States said would press new China the yuan, to allow its undervalued currency to appreciate, a politically sensitive issue that has long haunted talks.

"Next week we are going to China to let its exchange rate adjust to a faster pace to correct its undervaluation remain important, of the press", said David Loevinger, a senior official of the Ministry of finance.

Head of the Treasury Geithner conceded that yuan had appreciated by more than five percent since Beijing has decided to allow it to trade more freely against the dollar in June 2010.

Geithner spoke of "promising changes in economic policy in China", but stressed the need to "see lasting changes in actual policies on the ground."

But in Beijing, Chinese officials clear Friday that while they were ready to talk about monetary policy, they would be step being pushed on the pace of appreciation.

"On these issues, to be frank with you, we have different views which make necessary discussions," Vice Finance Minister Zhu Guangyao told journalists, adding that the exchange rate policy was China's sovereign right.

The talks are the two economic superpowers grow more interdependent.

China is the largest foreign financier of us public debt gaping, with holdings of binding of 1,154 billion in February.

Douglas Paal, Executive Vice President for studies at the Carnegie Endowment for International Peace, said that the United States has its goals of currency not due to talks but due to inflation of China.

"" Talks"won't produce breakthrough announcements, but the results are in this direction, in large part because China is the fear of inflation," said Paal, formerly the top American diplomat in Taiwan.

Consumer prices of the Chinese economy growing rose 5.4% in March of last year--the fastest pace since July 2008 and well above the target of the 2011 four per cent government.

"We get through to the revaluation of the renminbi (yuan) inflation and the devaluation of the dollar, which is to improve our results export in the Chinese market," he said.

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