Obama, China talk: 21st Century team

by James Puzzanghera

President Obama began two days of high-level talks between U.S. and Chinese officials today by urging closer cooperation on major issues, including the economy, energy and nuclear proliferation.

"We cannot predict with certainty what the future will bring, but we can be certain about the issues that will define our times," Obama said in opening remarks at the U.S.- China Strategic and Economic Dialogue in downtown Washington. "And we also know this: The relationship between the United States and China will shape the 21st century, which makes it as important as any bilateral relationship in the world."

The major challenge confronting both superpowers is the worldwide recession, and Obama stressed "our mutual interest in a lasting economic recovery."

"The current crisis has made it clear that the choices made within our borders reverberate across the global economy -- and this is true not just of New York and Seattle, but Shanghai and Shenzhen as well," Obama said. "That is why we must remain committed to strong bilateral and multilateral coordination. And that is the example we have set by acting aggressively to restore growth, prevent a deeper recession and save jobs for our people."

Treasury Secretary Timothy F. Geithner traveled to China this spring to push leaders there on long-term economic reforms to reduce the trade imbalance between the two countries as well as to assure Chinese leaders that their large holdings in U.S. bonds are safe investments.

Geithner, a former Peking University student who has extensive expertise on Asian financial issues, today again urged China to continue shifting its economy from one dependent on exports to nations such as the United States to one where its own population can sustain its growth.

"China's success in shifting the structure of the economy toward domestic-led growth, including a greater role for spending by China's citizens, will be a huge contribution to more rapid, balanced and sustained global growth," Geithner said in addressing the gathering at Washington's Ronald Reagan Building and International Trade Center. Among those in attendance were Chinese State Councilor Dai Bingguo and Vice Premier Wang Qishan.

(President Barack Obama greeted Chinese Vice Premier Wang Qishan, right, and Chinese State Councilor Dai Bingguo at the opening session of the first U.S.-China Strategic and Economic Dialogue at the Ronald Reagan Building and International Trade Center in Washington today. Photo by Haraz N. Ghanbari / AP)

The talks focus on economic and strategic issues and come at a delicate moment. China plays a major role in the U.S. economy by investing in Treasury securities that support U.S. debt. Chinese leaders want to be sure that the dollar will remain strong to protect that investment.

Geithner shares the lead role in the talks with Secretary of State Hillary Clinton. They jointly wrote an opinion piece in today's Wall Street Journal touting the important relationship between the two countries.

"Simply put, few global problems can be solved by the U.S. or China alone," they wrote. "The strength of the global economy, the health of the global environment, the stability of fragile states and the solution to nonproliferation challenges turn in large measure on cooperation between the U.S. and China."

Obama addressed those strategic issues as well, urging China's help in stopping nuclear proliferation in North Korea and Iran.

"Make no mistake: The more nations acquire these weapons, the more likely it is that they will be used," Obama said. "Neither America nor China has an interest in a terrorist acquiring a bomb or a nuclear-arms race breaking out in East Asia."

Obama stressed that he does not view China as a threat, but as a partner in solving major global issues, including addressing climate change. And China should do the same, he said.

"Some in China think that America will try to contain China's ambitions; some in America think that there is something to fear in a rising China. I take a different view," Obama said. "I believe in a future where China is a strong, prosperous and successful member of the community of nations, a future when our nations are partners out of necessity, but also out of opportunity."