Thursday, May 24, 2007

China urges U.S. patience in trade talks


At high-level economic talks that wrap up Wednesday, China is urging frustrated U.S. officials to be patient as the two powers work to manage a delicate trade relationship. The United States, by contrast, is pushing for quick action.

The talks began Tuesday and could yield some results, including increased U.S. airline flights to China and a lowering of barriers to sales of American energy technology products in China.

Senior U.S. officials have tamped down expectations of major breakthroughs, however, as they described the meetings as strategic discussions, not negotiating sessions. U.S. Commerce Secretary Carlos Gutierrez said the twice-a-year talks are "all about the long-term; developing a common understanding of the future."

Still, the U.S. side made a point of noting simmering frustration. Treasury Secretary Henry Paulson said Americans are by nature impatient people; Gutierrez described the "need to make progress in all areas as soon as possible."

The urgency is reflected in an increasingly restive U.S. Congress, where lawmakers are considering a spate of bills that would impose economic sanctions on China. Many blame America's soaring trade deficits and the loss of one in six manufacturing jobs since 2000 in part on claims of Chinese currency manipulation and copyright piracy.

In blunt words, Chinese Vice Premier Wu Yi cautioned the United States against making accusations.

"We should not easily blame the other side for our own domestic problems," Wu said through an interpreter. "Confrontation does no good at all to problem-solving."

Wu, known as a tough negotiator, said that both countries should "firmly oppose trade protectionism." She warned that any effort to "politicize" the economic relationship between the two nations would be "absolutely unacceptable."

Wu and her delegation were scheduled to meet privately this week with major congressional leaders.

The U.S. delegation raised the issue of food safety highlighted by such incidents as the deaths of pets who had eaten pet food made with tainted wheat gluten imported from China.

U.S. Labor Secretary Elaine Chao, briefing reporters at the end of the first day of talks, said Agriculture Secretary Mike Johanns had made a forceful presentation to the Chinese about the concerns Americans have about food safety. In response, she said, Chinese officials sought to assure the Americans that they would fully investigate any problems discovered.

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