Under Obama, US-China ties may face shaky start

[Guest guest]

Unlike voters, I am starting to get the sense that the media is not

as stupid as we thought. They are getting the gist of Obama's

ignorance and leadership shortcomings and bringing it to light after

all.

Administrator

http://news.yahoo.com/s/ap/20090124/ap_on_go_pr_wh/us_obama_china

Under Obama, US-China ties may face shaky start

By FOSTER KLUG, Associated Press Writer Klug, Associated Press

Writer – Sat Jan 24, 9:22 am ET

WASHINGTON – Secretary of State Hillary Rodham Clinton has said no

nation is more important to the United States than China. But ties

between the two powers may be off to a rocky start just days into the

Obama administration.

In his inaugural address Tuesday, President Barack Obama spoke of how

earlier generations of Americans had " faced down fascism and

communism. " China's state broadcaster quickly faded out the audio of

its live broadcast, the camera cutting back to a flustered studio

anchor.

Then, on Thursday, Obama's choice to lead the Treasury Department,

Geithner, wrote that Obama believes China is " manipulating "

its currency, which American manufacturers say Beijing does to make

its goods cheaper for U.S. consumers and American products more

expensive in China.

Chinese officials closely follow U.S. political rhetoric and

frequently decry what they consider foreign interference in China's

internal affairs. The United States often criticizes China about

human rights and trade abuses, but Washington and Beijing find

themselves increasingly intertwined in a host of crucial economic,

military and diplomatic efforts.

State media in China reported Saturday that a deputy governor of

China's central bank dismissed Geithner's comment. Su Ning was cited

as saying by the official Xinhua News Agency that the remarks

were " not in line with the facts. "

" We thought in the face of the financial crisis, there would be a

spirit of self-criticism beneficial to finding ways of resolving the

issue and overcoming the crisis, " Su said, adding that it was

imperative to avoid any excuses to encourage trade protectionism.

Earlier, China's foreign minister, Yang Jiechi, said Beijing was

committed to working with the Obama administration to strengthen ties

and cooperation.

Selig on, director of the Asia program at the U.S.-based Center

for International Policy, said it was " very ill-advised for the new

administration to confront China as if this were 10 years ago and we

were in a strong financial position internationally. "

" We are dependent on Chinese goodwill for our economic survival and

viability, and, therefore, it seems to me that this type of posture

is very risky, " he said.

Despite an early face-off with China over an intercepted U.S. spy

plane, former President W. Bush made it a priority to

strengthen relations with China while also pushing the country to

live up to what he considered its duties as an emerging global

superpower and a veto-holding member of the U.N. Security Council.

Trade ties between the United States and China often are tense. China

says it has made progress on currency changes and worries about bills

introduced in Congress that would impose economic sanctions on China

unless it moves more quickly to let its currency rise in value

against the dollar.

Although Geithner said China is " manipulating its currency, " he

suggested Thursday that now might not be the right time to brand

Beijing as a currency manipulator under U.S. trade law, which could

lead to U.S. trade penalties against imports from China.

His testimony may not have been a complete shock to China. Yang, the

foreign minister, has said he studies American television and

newspapers. Obama and Clinton, during their long campaigns to secure

the Democratic nomination for president, made no secret of their

desires for a tougher position with China about its human rights

record and its trade practices.

Still, Obama's young administration is not complete. He has yet to

name many of the officials who will be dealing with China issues. He

also has not yet decided whether to continue the high-level economic

discussions the Bush administration has held twice a year with China

since late 2006.

Bonnie Glaser, an analyst with the Center for Strategic and

International Studies think tank, said the Chinese have said during

the past few months that they want a good start to their relationship

with the new U.S. administration.

" Everybody just needs to be a little patient on this, " Glaser

said. " I would not draw any premature conclusions that the

administration has decided to take a tougher stance, and hopefully

the Chinese will be patient while the administration works this out. "