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Outcomes from Obama's visit to China

US President Barack Obama’s visit to China barely bridged divides on trade, currency policy and the Tibet issue, but it should have left each side feeling better about easing strains.

“We have differences…but I think the important thing is that both sides have recognised the importance of cooperation; that neither side can afford to lose the other,” said Tao Wenzhao, from the Institute of American Studies at the Chinese Academy of Social Sciences, a government think-tank.

Following is an assessment of where major issues stand after Obama’s visit:

Trade and currency tensions

Economic priorities differ significantly.

Obama pressed complaints that China’s yuan is set too low, hurting US business and exports, but Hu ignored the issue in comments to the media, instead dwelling on trade protectionism which Beijing China says unfairly threatens access to US and other markets.

Hu’s silence on the yuan suggested Beijing is reluctant to be seen as giving in to outside pressure, particularly as it takes further stock of the impact on exports.

Premier Wen Jiabao told Obama that China does not seek a trade surplus with the United States and wants to balance flows, striking a conciliatory note but also avoiding public comment on currency rifts.

“Lively global trade and investment will help to overcome the international financial crisis and accelerate global economic recovery,” said Wen, urging both countries to “together oppose trade and investment protectionism.”

Climate change

The visit brought a sense of strengthened commitment that Washington and Beijing will work together against global warming, but brought little concrete progress less than a month before UN-led talks in Copenhagen.

Obama said the two countries had struck deals covering areas ranging from renewables to cleaner coal, but gave no details beyond plans for a research center.

Obama said he wanted the Copenhagen meeting to agree a strong deal that would take immediate effect. He also said they had committed to significant mitigation of emissions, but this is already policy in both countries.

“Cooperation initiatives on renewable energy and energy efficiency are positive steps … but more political will is needed from both leaders to ensure a successful outcome at Copenhagen,” said Yang Ailun, climate campaigner at Greenpeace China.

North Korea and Iran

Washington has long looked to Beijing for help in pressing North Korea to abandon its nuclear weapons and has also sought to enlist China’s aid in persuading Iran to rein in its nuclear activities and be more open about them.

The summit, however, appeared to bring scant shift to Chinese policy. In his public comments, Hu held to China’s familiar language, urging dialogue and negotiations to solve both nuclear disputes. He did not mention how China viewed the possibility of fresh international sanctions against Iran.

Hu will, however, have probably come away with a clearer sense of the urgency the US gives these issues.

Human rights and Tibet

Obama pressed China on human rights but used a gentle brush strokes rather than sharp jabs in his public comments. This will be a relief to Beijing, which often reacts angrily to criticism of its restrictions on citizens’ rights and policies in its western restive regions, Tibet and Xinjiang.

Obama used a youth forum in Shanghai to speak out for freedom on the Internet and other rights. Ironically, China restricted that broadcast, meaning few citizens outside Shanghai heard his words.

“The Chinese seem quite paranoid about domestic stability and also feel they are in a stronger position to withstand pressure from the US,” Bonnie Glaser, China expert at the Centre for Strategic and International Studies in Washington DC, said.

The real test for Chinese assertiveness will come if Obama meets the Dalai Lama, the exiled Tibetan Buddhist leader scorned by Beijing as a “separatist.” Some in Washington have raised the prospect of such a visit.

Beijing would probably respond with a burst of condemnation, but avoid steps that would unsettle broader economic and political ties.

Copyright © 2009 Reuters

Published in Reuters website