. | . |
|
. |
by Staff Writers Beijing (AFP) Nov 18, 2011
China and the United States will open key trade talks on Sunday, with Beijing's currency policy likely to be high on the agenda after US President Barack Obama hit out at the value of the yuan. Analysts expect Beijing's currency controls, market access restrictions and lax intellectual property rights protection -- major bugbears for US lawmakers -- to top the agenda for the two-day meeting. China is also likely to push the United States to relax controls on high-tech exports to the Asian country, experts said. US Commerce Secretary John Bryson and US Trade Representative Ron Kirk will meet with a team led by Chinese Vice Premier Wang Qishan in China's southwestern city of Chengdu for the annual US-China Joint Commission on Commerce and Trade (JCCT). The atmosphere at the annual talks is expected to be frosty after Obama said last weekend that Beijing had not done enough to allow the yuan to reach a fair market value and called on a now "grown up" China to act more responsibly. US officials have long accused China of keeping its currency artificially low, fuelling a flow of cheap exports that has helped send the US trade deficit with China to more than $270 billion in 2010. But the issue has come to the political forefront in recent months ahead of US presidential elections in November next year. Last month the US Senate passed legislation that would punish China for alleged currency manipulation, raising hackles in Beijing, where state media warned it could spark a trade war between the two countries. And on Thursday, Democratic US Senator Bob Casey said he had delivered the message that the US would not tolerate what he called China's "unfair trade practices" in a meeting with the head of the Asian giant's vast sovereign wealth fund. "I think it is going to be hard for the US side not to bring up the renminbi," said Alistair Thornton, an analyst at IHS Global Insight in Beijing, using the official name for the Chinese currency. Given the turbulence in the US economy and growing frustration among lawmakers on both sides of the political aisle, Obama will "need that issue to be brought up at an event like this," Thornton said. Chinese state media reacted angrily to Obama's comments, made after an Asia-Pacific Economic Cooperation summit, accusing him of "scapegoating" Beijing for his country's economic woes and using the issue to attract votes. Mark Williams, chief Asia economist at London-based research house Capital Economics, said the JCCT meeting would be "chillier" than usual due to the US adopting "a more combative line against China's trade and currency policy". In the past three years, Chinese mobile network equipment giant Huawei has been stymied in two attempts to buy US technology companies. It was also blocked for national security reasons from selling equipment to top US mobile phone provider Sprint Nextel. And on Thursday a key US House of Representatives committee said it was investigating the national security threat posed by Chinese-owned telecommunications firms operating in US markets. China is likely to use the talks to demand greater access to US markets and for Washington to relax controls on high-tech exports, said Patrick Chovanec, an economics professor at Beijing's Tsinghua University. "There's a perception in China that the US is hostile towards Chinese investment," Chovanec told AFP.
Global Trade News
|
. |
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement |