Avanti Group – Trade, economy top agenda as China’s Xi meets U.S.’s Lew

http://www.reuters.com/article/2013/03/19/us-china-usa-lew-idUSBRE92I00Y20130319

U.S. Treasury Secretary Jacob Lew speaks with China's President Xi Jinping during their meeting at the Great Hall of the People in Beijing

The two men stuck resolutely to diplomatic niceties in front of the watching media ahead of what was, for both, their first major international meeting since taking their respective offices.

A U.S. official said in an e-mailed statement that the meeting itself was a 45-minute strategic level discussion of the major issues on the bilateral agenda including currencies, Europe and the global economy, intellectual property, cyber-security and North Korea, in which Lew was “candid and direct.”

China’s official Xinhua news agency in a commentary – which are not policy statements but typically reflect government thinking – said Lew should use his visit to convince Beijing that Washington would solve its debt problems, stabilize the value of the dollar and honor trade treaty commitments.

“The stakes are high,” the commentary said, striking a more hawkish tone than Xi.

“I can say we have a seamless connection,” China’s new president said, speaking in front of a tapestry depicting a pine tree and flying cranes, both symbols of hospitality.

“In the China-U.S. relationship we have enormous shared interests, but of course unavoidably we have some differences.”

Lew said both countries had a responsibility to promote global growth, and called on China to boost domestic demand to help in global rebalancing.

“The (U.S.) president is firmly committed to building a relationship of growing strength where we cooperate on issues of economic and strategic importance, understanding that we will each have to meet our own responsibilities, but we’ll also have to manage our differences,” he said.

Both Xi and Lew agreed on the important role of the Strategic and Economic Dialogue – due to take place in the United States this year after being held in China in 2012 – in cooperation and making progress on differences, according to the U.S. official’s e-mailed note.

TRADE RIVALRY

Trade is clearly an area of both cooperation and rivalry for the world’s two biggest economies, as China’s Commerce Ministry reinforced at a separate event, saying it would accelerate trade talks with key trading partners as U.S. efforts to seal its own trans-Pacific free trade deal gather pace.

China will hold three rounds of trade negotiations with Japan and South Korea this year and step up talks with other trading partners, the Ministry of Commerce said.

The talks are seen by analysts as a two-pronged initiative by Beijing to engage with Japan after recent diplomatic tension over disputed islands in the East China Sea, while also countering the “pivot” by the U.S. to reaffirm its role in Asia in the face of China’s economic rise.

Japanese Prime Minister Shinzo Abe said last week that Tokyo would seek to join the U.S.-led Trans-Pacific Partnership (TPP) talks that currently bring together the United States, Canada, Mexico, Australia, New Zealand, Chile, Peru, Vietnam, Malaysia, Brunei and Singapore.

Bringing the world’s third-largest economy into the negotiations would set the stage for a final agreement covering nearly 40 percent of world’s economic output, but could also isolate China in the process.

“We will improve communications and talks with the related parties and push forward the progress of our own free trade areas,” Chinese Commerce Ministry spokesman, Shen Danyang, told reporters when asked about Japan’s plan to join TPP talks.

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One thought on “Avanti Group – Trade, economy top agenda as China’s Xi meets U.S.’s Lew

  1. Demand and supply is what a market economy is controlled of. Everything is determined by demand and supply, from price of goods down to services. Market economy can sometimes face problems of recession and depression and in such a situation the government must provide help for companies which are facing a problem.

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