07-28-2009, 03:42 PM
<b>US seeks closer China ties
</b>
By Daniel Dombey and Sarah OâConnor in Washington
Published: July 27 2009 19:36 | Last updated: July 28 2009 00:43
Barack Obama on Monday sought to recast the USâs relationship with China, urging Asiaâs rising superpower to forge deeper ties with Washington on the economy, climate change and nuclear proliferation.
Speaking at the start of two days of top-level talks between the countries on the diplomatic and economic challenges confronting them, the US president predicted that Washingtonâs relationship with Beijing would âshape the 21st centuryâ.
Mr Obama said: âSome in China think that America will try to contain Chinaâs ambitions; some in America think that there is something to fear in a rising China. I take a different view.â
However, in a sign of remaining tensions, a US official said China later discussed its desire to âreform the international monetary systemâ in closed door meetings.
In March, Chinaâs central bank governor floated the idea of a new reserve currency â which would replace the dollar â but Beijing has since sent mixed signals about how quickly it would like such a change.
The relationship remains largely defined by Chinaâs status as the worldâs biggest holder of US Treasury bonds, which heightens Beijingâs influence over Washington and increases its exposure to the battered US economy and swelling deficit. The two countries quizzed each other on Monday about their plans to phase out their huge economic stimulus packages.
The Obama administration has sought to give political focus to what had been a Treasury-dominated dialogue under Mr Obamaâs predecessor, George W.âBush.
Hillary Clinton, secretary of state, and Tim Geithner, Treasury secretary, are taking part in the talks with Wang Qishan, Chinaâs vice-premier, and Dai Bingguo, state councillor.
Mr Dai said that the two countries were âin the same big boat that has been hit by fierce wind and huge waves, with our interests interconnected, sharing weal and woeâ.
He concluded his speech by quoting Mr Obamaâs campaign cry of âYes we canâ.
Depicting China as a force for progress that needed to co-operate with Washington, address global issues and respect human rights within its own borders, Mr Obama said the countriesâ priorities should be the economy, climate change and combating the threat of nuclear proliferation in Iran and North Korea .
While he praised China for âlifting hundreds of millions of people out of povertyâ, he also highlighted US calls for âthe religion and culture of all Âpeoples [to] be respected and protectedâ.
Washington responded cautiously to recent clashes involving Chinaâs Uighur minority in Xinjiang province. US diplomats are trying to balance a likely visit by Mr Obama to China this year with a possible meeting between the US president and the Dalai Lama, the exiled Tibetan leader.
Mr Geithner urged China to shift its economy towards domestic consumption, which he said would be a âhuge contribution to more rapid, balanced and sustained global growthâ.
He also said that the US would help China win greater representation at international organisations such as the International Monetary Fund.
Copyright The Financial Times Limited 2009
</b>
By Daniel Dombey and Sarah OâConnor in Washington
Published: July 27 2009 19:36 | Last updated: July 28 2009 00:43
Barack Obama on Monday sought to recast the USâs relationship with China, urging Asiaâs rising superpower to forge deeper ties with Washington on the economy, climate change and nuclear proliferation.
Speaking at the start of two days of top-level talks between the countries on the diplomatic and economic challenges confronting them, the US president predicted that Washingtonâs relationship with Beijing would âshape the 21st centuryâ.
Mr Obama said: âSome in China think that America will try to contain Chinaâs ambitions; some in America think that there is something to fear in a rising China. I take a different view.â
However, in a sign of remaining tensions, a US official said China later discussed its desire to âreform the international monetary systemâ in closed door meetings.
In March, Chinaâs central bank governor floated the idea of a new reserve currency â which would replace the dollar â but Beijing has since sent mixed signals about how quickly it would like such a change.
The relationship remains largely defined by Chinaâs status as the worldâs biggest holder of US Treasury bonds, which heightens Beijingâs influence over Washington and increases its exposure to the battered US economy and swelling deficit. The two countries quizzed each other on Monday about their plans to phase out their huge economic stimulus packages.
The Obama administration has sought to give political focus to what had been a Treasury-dominated dialogue under Mr Obamaâs predecessor, George W.âBush.
Hillary Clinton, secretary of state, and Tim Geithner, Treasury secretary, are taking part in the talks with Wang Qishan, Chinaâs vice-premier, and Dai Bingguo, state councillor.
Mr Dai said that the two countries were âin the same big boat that has been hit by fierce wind and huge waves, with our interests interconnected, sharing weal and woeâ.
He concluded his speech by quoting Mr Obamaâs campaign cry of âYes we canâ.
Depicting China as a force for progress that needed to co-operate with Washington, address global issues and respect human rights within its own borders, Mr Obama said the countriesâ priorities should be the economy, climate change and combating the threat of nuclear proliferation in Iran and North Korea .
While he praised China for âlifting hundreds of millions of people out of povertyâ, he also highlighted US calls for âthe religion and culture of all Âpeoples [to] be respected and protectedâ.
Washington responded cautiously to recent clashes involving Chinaâs Uighur minority in Xinjiang province. US diplomats are trying to balance a likely visit by Mr Obama to China this year with a possible meeting between the US president and the Dalai Lama, the exiled Tibetan leader.
Mr Geithner urged China to shift its economy towards domestic consumption, which he said would be a âhuge contribution to more rapid, balanced and sustained global growthâ.
He also said that the US would help China win greater representation at international organisations such as the International Monetary Fund.
Copyright The Financial Times Limited 2009