Tensions underpin US-China trade talks

US treasury secretary Hank Paulson in China
US treasury secretary Hank Paulson in China
 

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China and the United States reached "important consensus" at the end of their trade talks, state media reported, but tensions continue to exist between the two countries.

The Xinhua news agency quoted vice premier Wang Qishan as saying China looked forward to "candid and pragmatic talks" with the incoming administration of Barack Obama.

And current treasury secretary Hank Paulson described the talks as "robust", saying that both sides were "committed to strengthening the global economy".

Observers say grievances remain unresolved on both sides, however. China is unhappy with Washington's management of the economy, having called on the US to go "all-out" to stabilise the current crisis.

Beijing has also accused the US of protectionism or helping protectionism in other countries.

"Reflecting on the Great Depression in the 1930s, we can see that several nations adopted protectionist measures, which caused more disastrous consequences," minister of commerce Chen Deming said.

The US continues to be concerned by China's reluctance to allow its yuan currency to rise in value, which helps China's economy.

It issued a factsheet after the summit's conclusion stating that, while acknowledging uneven currency movements over the short-term, the US "encouraged China to continue, and accelerate, [yuan] appreciation and flexibility."


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