China and the United States Start Strategic and Economic Dialogue in Beijing

The two powerful nations, China and the United States have started their Strategic and Economic Dialogue in Beijing after months of bickering. Each nation is saying that they are committed to managing their differences. Chinese President Xi Jinping even went as far as saying that it would be a disaster to have a confrontation with the United States. He said that the global community will benefit from a Sino-U.S. cooperation during the dialogue’s opening ceremonies.

The high level talks are attended by representatives of the two countries. The United States delegation is led by U.S. Secretary of State John Kerry together with Treasury Secretary Jack Lew. China is represented by Vice Premier Wang Yang and top Chinese diplomat, Yang Jiechi. The talks are expected to tackle several issues, including an investment treaty, the Chinese currency, the maritime disputes China is facing and cyber-security.

New model of bilateral relations with China

President Xi Jinping of China said that the two countries must have equal trust with each other and mutually respect each country, including the accordance of respect to a country’s sovereignty, its territorial integrity and the development path each country chooses.

On the Chinese side, there were increasing tension between the China and other countries over territorial claims in the South China Sea. Hostilities also developed in Japan over the same issue in the East China Sea. There is also the issue of Internet spying and hacking activities the U.S. charges China with.

U. S. President Barack Obama issued a statement saying that the U.S. government is committed to creating a new model of relations with the East Asian country, which will focus on constructive management and cooperation to resolve differences.

Candid discussions

According to a U.S. administration official, Secretary Kerry and the senior Chinese officials will have candid discussions over several issues, including cyber espionage, the maritime disputes in the Pacific region and human rights issues as well. The U.S. delegation wants the Chinese to see that the cyber espionage issue is very important that they are willing to roll their sleeves to tackle the issue diplomatically.

The issue of the Chinese Yuan

Two-way trade and business ties between the two countries are worth over half a trillion dollars per annum. Yet despite this, the two governments have their differences involving the value of the Yuan, the Chinese currency and the issue of human rights.

U.S. Treasury Secretary Jack Lew said that the United States supports the effort of China to allow the market to have a more decisive role in the country’s economy. Allowing the market to determine the exchange rate will be a crucial step for China. This is in relation to Washington’s wish for the country to allow the exchange rate to be market-driven. Currently China’s economic growth relies more on household consumption. Critics are saying that this is an artificial suppression of the Yuan so that the Chinese exporters will be protected. China denies this allegation.

Few agreements reached

These bilateral talks have been ongoing for five years, yet there are very few agreements of substance that have been gained. Still the officials of the United States are willing to continue the discussions to avoid confrontations. This year, the U.S. is hoping that China will loosen its restrictions so that U.S. companies operating in China will have a more level playing field.

While China offhandedly views the U.S. of siding with the Philippines,Vietnam, as well as Japan, over territorial claims Washington reiterates that it has not taken any side on the issue.

Image credit: U.S.-China Economic and Strategic Dialogue taken by U.S. Department of State under Public Domain.