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By Richard McGregor in Washington
Published: May 9 2011 20:23 | Last updated: May 9 2011 20:23
The presence of the Chinese military for the first time at top-level US-
China talks “can reduce the dangerous risks of misunderstanding and
miscalculation”, according to Hillary Clinton, secretary of state.
The annual dialogue, which opened in Washington on Monday with about 20
ministerial-level officials from each country, includes a joint session with
military officers and diplomats.
Both the Obama and Bush administrations have tried to institutionalise
greater dialogue with the People’s Liberation Army, but contacts have
repeatedly been cut off by Chinese protests over such issues as US arms
sales to Taiwan.
With the growth of the Chinese navy and a gradual extension of its power
beyond Taiwan into the Pacific and Indian oceans, US officials say the
potential for both co-operation and clashes with the US is rising.
“To work together we need to be able to understand each other’s intentions
and interests, and we must demystify long-term plans and aspirations,”
said Mrs Clinton.
The dialogue, started under George W. Bush and maintained in an extended
format by Barack Obama, focuses on economic issues. The US and China
together account for about a third of global output.
Given deep bilateral divisions over economic and diplomatic issues and on
human rights, the dialogue is less a forum for deals than a bureaucratic
device to keep both sides talking at senior levels during rough patches in
the relationship.
Joe Biden, US vice-president, said in opening the meeting that the two sides
had “vigorous” disagreements over many issues, including human rights.
Mrs Clinton was more explicit. The US had made clear “publicly and
privately our concern about human rights” amid reports of “public interest
lawyers, writers, artists and others” being detained or disappearing, she
said.
Chinese leaders couched their opening comments in vaguer, coded terms,
stressing the need for “mutual respect” – which usually means an
acceptance on the US side of China’s political system.
Dai Bingguo, China’s top diplomat, said that his country welcomed more
visits from the US so Americans could learn “first hand the enormous
progress China has made in various fronts, including in human rights”.
On the economy, the US continues to press for faster appreciation of China’
s currency, the renminbi, which has long been a bone of contention
especially in Congress.
Tim Geithner, Treasury secretary, is reigniting the US push for greater
financial liberalisation, including deregulation of interest rates, which
Washington believes is essential to rebalance China’s economy away from
investment and exports to consumption.
“The reforms we must both pursue to meet [the two countries’] very
different challenges are not in conflict, and the strengths of our economies
are still largely complementary,” Mr Geithner said.
China, for its part, says it is watching the US budget debate carefully.
China is the largest foreign holder of US securities and worries that
America’s fiscal problems could hurt the value of its holdings.
Wang Qishan, Chinese vice-premier, said: “The key to global economic
recovery still lies with the United States.”
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