Beijing(AsiaNews/Agencies) –Chinaand theUnited Statesended 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 inWashington.
Chinahas 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.
Chinafreed 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.
“TheUnited StatesandChinaknow that our economic relationship is best when it produces benefits for both our countries. And we know that balanced sustainable growth inChinais 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 andJapan. 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 formerChinahand at the US State Department, said thatChinahas a great stake in working with theUSon 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 ofChinain the last ten years has instead been accompanied by a relative decline inUSinfluence given its mismanagement of international issues such asIraq. This explains why Paulson was accompanied by a high level delegation that included the chairman of US Federal Reserve, Ben Bernanke, and sixUScabinet members. For theUS, Jin believes, theChinacard 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)
