US, China seek to minimise differences

WASHINGTON – The United States and China minimised their disputes over such issues as the huge trade gap between the two countries and America’s soaring budget deficits and instead emphasised a commitment to work together to resolve the worst global financial crisis since the Great Depression of the 1930s.

Wrapping up two days of high-level talks on Tuesday, both countries sought to play down disagreements on trade, exchange rates, human rights and climate change in order to keep from upsetting global investors who have been monitoring the talks for any signs of a rift between the two economic superpowers.Instead of disagreement, the two countries offered harmony with China pledging to work toward a key US goal that it foster greater domestic-led growth to reduce its reliance on exporting to the United States.For its part, the Obama administration pledged to tackle the budget deficit, which this year is projected to hit a record US$1,84 trillion. That flood of red ink has left the Chinese, the world’s largest holder of US Treasury securities, distinctly nervous about the safety of their investments.The two sides were working to develop a plan to guide future talks between the two nations. The talks this week, which Obama opened Monday, represented a modification of discussions that were begun by the Bush administration. Those talks, led by then-Treasury Secretary Henry Paulson, focused primarily on economic issues.However, Obama expanded the agenda of the renamed Strategic and Economic Agenda to include not just economic disagreements but also foreign policy issues such as efforts to develop a coordinated response to North Korea’s nuclear ambitions.Both sides stressed the importance of working in a cooperative manner to combat the severe economic downturn, which has pushed the US unemployment rate up to a 26-year high of 9,5 per cent and triggered heavy job losses in China and other countries around the world.’The global financial crisis has made clear that the economic policy choices made by China and the US are … crucially important to the stability of the world economy as a whole,’ Treasury Secretary Timothy Geithner said during the final day’s discussions.In his comments Tuesday, Chinese Vice Premier Wang Qishan voiced support for a key US goal that China shift to more domestic-led growth rather than depending so much on exports that drive up the US trade deficit.’China will focus on boosting domestic demand and in particular consumer demand,’ Wang said, speaking through a translator. He and Geithner sat at the head of a long conference table underneath massive chandeliers in Treasury’s ornate Cash Room.But Wang cautioned that this was ‘not an easy task’ and would require ‘long-term and arduous efforts.’ US officials have expressed concerns in the past that China was moving too slowly in making the changes needed such as building a better social safety net that would encourage its citizens to spend more and save less.Geithner repeated the commitment that the administration would trim its budget deficits once the spending necessary to jump-start the economy and stabilise the financial system had been completed.However, private economists are worried that the administration has yet to put forward a credible plan to meet Obama’s pledge to cut the deficit in half by the end of his first term in office. This year’s imbalance is projected to be more than four times the size of last year’s.The economic talks on Tuesday focused on the need to fight against erecting protectionist trade barriers during the economic downturn. Other economic issues on the final day were ways to achieve the goal of overhauling the International Monetary Fund and other global financial agencies to give emerging economies such as China greater say in the operation of the institutions.’We can build upon our joint response to the global financial crisis by continuing to provide constructive leadership and support for the institutions underpinning global financial stability,’ Geithner said in the meetings being held at the Treasury Department.While officials on both sides struck a conciliatory tone in their public statements, they did raise some tough issues during the closed-door discussions.China, worried about its huge investments in the United States, quizzed administration officials about budget deficits. The Obama administration pressed China on the need to rebalance its economy to focus more on domestic-led growth rather than relying on exports to the United States, according to aides who briefed reporters. -Nampa-AP