Nothing new as to the yuan revaluation or other controversial issues, but both parties agree that the meeting was important for the world.
Beijing (AsiaNews/Agencies) – China and the United States ended their first strategic economic dialogue with good intentions but little by way of substance. Both parties are satisfied though and have scheduled next meeting for May 2007 in Washington.
China has not accepted US demands to allow the yuan to gain against the dollar to help close the trade gap between the two nations. The US-China trade deficit is set to reach a record US$ 229 billion this year. Last month it hit US$ 24.4 billion.
China freed the yuan from a dollar peg last year but the currency is still managed in tight bands—it has gained just 3.74 percent since July 2005—something that won’t re-align the exchange rate in any significant way.
Despite little progress, the final press briefing showed how important talks are to both parties.
“The United States and China know that our economic relationship is best when it produces benefits for both our countries. And we know that balanced sustainable growth in China is vital to the strength of the global economy,”" US Treasury Secretary Henry Paulson said.
Vice-Premier Wu Yi, who headed the Chinese delegation, was a bit more upbeat and said discussions were very successful and would help boost trade and economic relations.
Chinese Premier Wen Jiabao said in Friday's meeting with Paulson that the “dialogue has drawn wide attention from European countries and Japan. They would like to follow suit”.
Observers agree that the economies of the countries have become interdependent but it is still not clear which one needs the other more.
Susan Shirk, Professor of Political Science at UCSD and a former China hand at the US State Department, said that China has a great stake in working with the US on issues such as nuclear non proliferation and diplomacy to increase its influence worldwide.
Jin Canrong, professor of international relations and Deputy Director at the Center for American Studies at Renmin University of China, disagrees. The rise of China in the last ten years has instead been accompanied by a relative decline in US influence given its mismanagement of international issues such as Iraq. This explains why Paulson was accompanied by a high level delegation that included the chairman of US Federal Reserve, Ben Bernanke, and six US cabinet members. For the US, Jin believes, the China card remains key to its world status and for Bush it is a way to show Congress the value of it.
For Huang Yiping, an economic expert, both countries are pursuing their respective national interests but they are also responsible for economic growth and world stability. Their strategic dialogue can lead to long-term agreements but won’t help solve many short-term issues. (PB)
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