Sun, Feb 01, 2009 page1

• Obama, Hu vow to strive for more positive relations

  • AFP
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  US President Barack Obama and Chinese President Hu Jintao (胡錦濤) have agreed to forge “more positive” ties between their giant nations in their first telephone call since the US leader came to power, a White House spokesman said on Friday.

  White House spokesman Robert Gibbs said that Obama and Hu spoke on Friday morning of their “intention to build a more positive and constructive US-China relationship.”

  Meanwhile, Beijing said yesterday that the Chinese leader had urged better ties with the US in his first phone conversation with Obama and called for both sides to resist trade protectionism.

  An account of the conversation issued by the Chinese foreign ministry quoted Hu telling Obama that China would work toward a “more constructive China-US relationship” and welcomed US efforts to shore up the US economy, but warned against moves toward protectionism, the statement said.

  “We hope to strengthen communication and coordination on macroeconomic policy and firmly resist trade protectionism,” Hu was quoted saying.

  The conversation, 11 days into Obama’s presidency, followed sharp exchanges between the two sides over China’s currency policy and calls from Beijing for a stepped up effort between the two giants to beat the economic crisis.

  “The two presidents discussed the international financial crisis and agreed that increased close cooperation between the US and China is vital,” Gibbs said.

  The spokesman said the presidents agreed to work together on the international stage, specifically regarding Iran, Afghanistan and Pakistan, and on counterterrorism and climate change.

  “President Obama expressed appreciation for China’s role as chair of the six-party talks and the two sides affirmed the importance of denuclearization of the Korean Peninsula,” Gibbs said.

  IMBALANCES

  The only sign that the two leaders had touched on trade and currency tension came when Gibbs said Obama “stressed the need to correct global trade imbalances as well as to stimulate global growth and get credit markets flowing.”

  There was no mention in the statement whether the US president also raised perennial US concerns with China on human rights, Tibet, religious freedom and Taiwan.

  Earlier in the week, the first exchanges between the new administration and Beijing were dominated by a spat over comments by incoming US Treasury Secretary Timothy Geithner that China was manipulating its currency.

  Gibbs said Geithner, in written comments to his Senate confirmation hearing: “was restating what the president had said during the [election] campaign.”

  “I think it’s safe to say this administration will determine in the spring what that means,” he said.

  The Treasury Department issues twice-yearly reports on global currency policies. The next one is due in April and a finding that China is “manipulating” its currency to gain a trade edge could trigger US sanctions.

  Under the administration of former president George W. Bush, the Treasury stopped short of that designation despite furious complaints in Congress that China does indeed artificially weaken the yuan’s value to boost its exports.

  China denied it was manipulating the yuan and said it had never done so to boost its trade performance.

  PRESSURE

  Obama last week faced more pressure from Congress in a hearing when organizations including Amnesty International and Reporters Without Borders demanded he push Beijing on what they said was backsliding on human rights.

  Sino-US watchers have been eagerly awaiting the first contact between Obama and the Chinese for hints of how the crucial relationship will develop under his Democratic administration.

  Secretary of State Hillary Clinton last week faulted the Bush administration for allowing US-China relations to slip too much into the economic sphere.

  “We need a comprehensive dialogue with China,” Clinton said. “The strategic dialogue that was begun in the Bush administration turned into an economic dialogue. That is a very important aspect of our relationship, but it is not the only aspect.”
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