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TRADE WARS
Obama presses next China leader on 'rules'
by Staff Writers
Washington (AFP) Feb 14, 2012

Xi urges 'greater balance' in US-China trade
Washington (AFP) Feb 14, 2012 - Chinese Vice President Xi Jinping on Tuesday called for "greater balance" in trade and investment between the United States and China, addressing US concerns on the issue.

"We should tap our cooperation potential, create more bright spots in our cooperation and strive for greater balance in trade and investment between the two countries," Xi said after talks with US President Barack Obama.

"We should address each other's economic and trade concerns through dialogue and consultation, not protectionism, and uphold the mutually beneficial pattern of China-US economic relations and trade," Xi said.

He was speaking during a State Department lunch with US Secretary of State Hillary Clinton and Vice President Joe Biden.

China's trade surplus with the United States is a sensitive issue as US lawmakers accuse Beijing of keeping the value of its currency unfairly low to fuel inexpensive exports that have turned China into a manufacturing giant.

US officials and business leaders have in the past called for China and other countries to increase their investments in the United States as a means to create US jobs.


US President Barack Obama on Tuesday urged China to play by the "same rules" in the global economy but voiced hope for cooperation in a key introductory meeting with leader-in-waiting Xi Jinping.

China's vice president, who is expected to take the helm next year, largely focused on the positive on his closely watched US visit. He pledged in general terms that China would improve its widely criticized record on human rights.

Xi made the rounds in Washington as Tibetans and others staged noisy protests outside most venues. At the Pentagon, he was given a rare honor ceremony with a 19-gun salute and booming cannons.

Obama, welcoming Xi to the Oval Office, said that Washington welcomed a "prosperous" China and praised its "extraordinary development over the last two decades," but stressed that power came with "increased responsibilities."

"We want to work with China to make sure that everybody is working by the same rules of the road when it comes to the world economic system," Obama said alongside a relaxed-looking Xi, as senior aides and translators stood by.

"That includes ensuring that there is a balanced trading flow not only between the United States and China but around the world," Obama said.

The US leader also brought up concerns about human rights, saying Washington would "continue to emphasize what we believe is the importance of realizing the aspirations and rights of all people."

Speaking later at a luncheon for Xi at the State Department, Vice President Joe Biden sharply criticized China's decision to join Russia in vetoing a UN resolution condemning violence in Syria, as well as Beijing's rights record.

"We have been clear about our concern over the areas in which, from our perspective, conditions in China have deteriorated and about the plight of several very prominent individuals. We appreciate your response," Biden said.

Xi responded that China has made "tremendous and well-recognized achievements" in human rights but added: "There is always room for improvement."

"We will, in light of China's national conditions, continue to take concrete and effective policies and measures to promote social fairness, justice and harmony and push forward China's course of human rights," Xi said.

Chinese President Hu Jintao made similar remarks in Washington last year, and acknowledged China does not share Western ideas about human rights, believing its "national" characteristics must be taken into account.

The Obama administration has spent months planning the visit by Xi, who is expected to succeed Hu next year and could serve as president for a full decade in which many experts believe that China will grow at breakneck speed.

But China is already in the firing line ahead of US elections in November, particularly on economic issues. US lawmakers accuse Beijing of keeping the value of its currency unfairly low to fuel inexpensive exports that have turned China into a manufacturing superpower.

At the luncheon, Xi said the United States and China should "should address each other's economic and trade concerns through dialogue and consultation, not protectionism, and uphold the mutually beneficial pattern of China-US economic relations and trade."

China has let its yuan appreciate since mid-2010 in response to concerns over inflation. But the United States wants China to do more and to take action in other areas including protection of US intellectual property.

As he held talks at the White House, dozens of impassioned pro-Tibet activists outside waved flags and chanted "China lies, Tibetans die" and "Xi, Tibet will be free!"

China has stepped up detentions of government critics since last month and has recently imposed what residents say is virtual martial law in Tibetan areas after a wave of self-immolation protests against Beijing's rule.

The wife of Gao Zhisheng, a lawyer who has defended some of China's most vulnerable people including coal miners and underground Christians, voiced fear that her husband may be dead. He was arrested in February 2009 and little has been heard from him since.

"The government has lied to the family so many times in the past few years. They laugh at and play games with the family," Geng He told AFP before testifying Tuesday at the US government's Congressional-Executive Commission on China.

Author Yu Jie, who fled to the United States last month after what he said was torture by Chinese police, pressed for Obama to take a firmer approach on human rights.

"The Chinese Communist Party remains a tiger that will bite," Yu wrote in an opinion piece in The Washington Post.

Xi heads Wednesday to Iowa, where he will meet Midwesterners from his first trip to the United States in 1985, before heading to California where he is likely to watch a Los Angeles Lakers basketball game.

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Brazil, China air trade differences
Brasilia (AFP) Feb 13, 2012 - Brazil and China aired their differences over their ballooning multi-billion trade relationship during a high-level meeting attended by Chinese Vice Premier Wang Qishan here Monday.

Brazil is pushing for greater access for some of its products in China, which in 2009 overtook the United States to become Brazil's largest trading partner, with bilateral trade reaching $77 billion last year.

Beijing is now also the largest investor in the South American nation, with Brazil enjoying a trade surplus of some $11.5 billion.

"We are discussing some issues of concern to Brazilian industry, such as Brazilian exports of manufactured goods to China and also a future voluntary" reduction of Chinese exports to Brazil, Brazilian Vice President Michel Temer said after the talks here.

Iron ore and soybeans represent more than 80 percent of Brazil's exports to China, which in turn sells mostly manufactured goods to its fellow member in the so-called BRICS group of emerging powers -- Brazil, Russia, India, China and South Africa.

But Brazilian manufacturers have been complaining about the influx of cheap Chinese imports and want the high-level bilateral commission to tackle such issues.

Brasilia wants China to open its doors wider to Brazilian manufactured goods and limit its massive exports of shoes, textiles and other products such autos that have been flooding into this country, a foreign ministry source here said.

"Brazil needs to seek greater penetration of its manufactured goods in China," the chief economist of National Confederation of Industry, Flavio Castelo Branco, told AFP.

A senior Brazilian official said the sharp increase in imports of cheap Chinese products and access to the Chinese market for Brazilian manufactured goods "is an urgent problem which needs to be tackled."

He added that "the Chinese government signaled that it plans to act."

Wang, who earlier Monday called on President Dilma Rousseff, stressed that China planned to "enhance trade rules" and said the Chinese side would keep on increasing the introduction of Brazilian high value added products."

Vice President Temer said his side specifically pressed for greater access for Brazilian meat products, executive jets from leading Brazilian aircraft manufacturer Embraer and permission for Brazilian companies such as bus makers Marcopolo to set up shop in China.

The ministry source said the Chinese side meanwhile expressed concern about the recent imposition by Brazil of 30 percent tariffs on imported cars. Brazil hiked its tariffs after Chinese car imports rose nearly 600 percent between 2010 and 2011, according to a recent report by the Brazil China Chamber of Commerce.

Top Chinese auto makers recently announced they planned to assemble their vehicles in Brazil.

Wang also said the two sides expressed interest in increasing bilateral investments and "promoting the use of national currencies in bilateral trade," an idea under discussion for several years.

Brazil is the world's sixth largest economy, while China is the second biggest behind the United States.



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