As forecast, Paulson leaves Beijing empty handed, both he and Hu repeating that dialogue alone can give “profitable results”. Experts: common interests far exceed commercial and economic differences and they will prevent a trade war. A million Chinese toys are removed from shops, believed toxic.

Beijing (AsiaNews/Agencies) –US treasury secretary Henry Paulson concluded his visit to China, as predicted, without conclusive results.  Sweeping declarations on converging interests with the Chinese leader, but no specific commitments.  But both parts have expressed their desire to push ahead with dialogue and to value their common interests rather than their economic differences.

Yesterday at the end of his meeting with President Hu Jintao, Paulson reiterated that “both sides should spare no effort to make the strategic dialogue successful as it is at a crucial moment” and that Chinese leaders “are to proceed with Yuan revaluation and other reforms at a gradual pace”. Paulson's visit coincides with a drive by US lawmakers, frustrated by America's record trade deficit with China (which reached 200 billion dollars in China’s favour in 2006), to press Beijing upon pain of sanctions to allow open markets to set the Yuan's value, and render US products competitive.  Many Congress leaders are critical of this “economic-strategic dialogue” describing them as an unproductive and they are pushing for sanctions against Beijing for manipulating the Yuan.  Paulson opposes this, insisting that only dialogue will bring profitable results.

Chinese leaders have stated that they have no intention of intervening, for now, on the value of the Yuan.  Hu, while praising dialogue, yesterday repeated that it must be useful “for both sides”.  The day before the vice Premier Wu Yi insisted that “China still has 23 million people living in poverty. China's very goal in its development is so that its 1.3 billion people can eat their fill, dress warmly and live well.” to clarify that they nation has no intention of revaluing the Yuan, which would lead to mass unemployment and render millions of farmers unable to compete with foreign agricultural products.

Experts observe that the two superpowers common interests far out weigh their economic difference. Recalling that it is in the interests of both to maintain and widen global trade, without obstacles to encourage free circulation of capital and to keep world petrol prices stable while they search for alternative energy sources. Both consider the non proliferation of nuclear arms fundamental and together insist that North Korea cease its nuclear missile tests, even if Washington supports India’s nuclear programme and Beijing is not opposed to Iran’s, from whom it buys a large part of its petrol and gas.  Both states fight Islamic terrorism.

All of these factors added together –they conclude – makes it probable that the two countries will choose dialogue, rather than confrontation, even if there remain contentious issues such as Taiwan.

Another large and current problem is the safety of Chinese products.  Mattel Inc owner’s of Toymaker Fisher Price has recalled almost one million Chinese-made toys over fears that their paint contains too much lead, which can be swallowed by infants.  The company said that it was removing the products from shops, on sale since May and would intercept incoming shipments Fisher Price, while they have also urged parents to remove the affected toys from their children and contact Fisher Price.

General Administration of Quality Supervision, Inspection and Quarantine, Wei Chuanzhong, rejected the accusations however, responding that the products correspond to international standards.

 

• CHINA
• USA
• TRADE
• YUAN
• COMMER
• GOODS
• PRODUCTS
• POVERTY
• UNEMPLOYMENT
• PRODUCT
• SAFETY
• TAIWAN