China-US ties improving,Hu to WHouse team

After talks in Beijing,both China and US put an optimistic face on ties that have been jolted by economic amp; security tensions.

China and the United States said on Wednesday that their sometimes rocky relationship is sounder after talks in Beijing,with both putting an optimistic face on ties that have been jolted by economic and security tensions.

The friendly mood-music between two of the world8217;s biggest economies came during talks between Chinese President Hu Jintao and two White House advisers,Deputy National Security Adviser Tom Donilon and National Economic Council Director Larry Summers.

Throughout 2010,Washington and Beijing have gone through bouts of friction over Internet policy,Tibet,U.S. arms sales to Taiwan,China8217;s currency and Chinese territorial claims in the South China Sea. The gaping U.S. trade deficit with China,worth 226.9 billion in 2009,has fueled trade disputes.

President Hu is likely to visit the United States early next year,and he played down the rifts in remarks to Donilon and Summers,who arrived in Beijing on Sunday for meetings with senior economic officials and diplomats.

8220;I8217;ve heard your discussions have gone well. I8217;m sure that this visit will certainly enhance mutual communication and mutual trust,8221; Hu told them at the start of the talks,while reporters were briefly allowed in the meeting room.

8220;Since President Obama assumed office,China-U.S. relations have on the whole maintained healthy development thanks to the efforts of both sides,8221; added Hu.

The Obama administration was also looking to smooth ties with Beijing,Donilon told Hu.

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8220;Our discussions have been productive,detailed,far-reaching 8212; covering the full range of security and economic issues,8221; said Donilon,who was seated next to Hu.

Neither side has said what issues are being discussed during the three days of talks ending on Wednesday,which included a meeting between Summers and Zhou Xiaochuan,the head of China8217;s central bank,which steers currency policy.

YUAN,SECURITY ISSUES

But the two sides have had plenty to talk about.

Washington complains that China keeps its yuan currency too low against the dollar,giving its manufacturers an unfair advantage and making Chinese exports cheaper.

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China unofficially pegged the yuan to the dollar from mid-2008 to mid-2010,so the currency weakened against other trade partners as the value of the dollar slid.

China ended that de facto peg on June 19,but has risen only about 0.4 percent against the dollar since then.

As well,Beijing has complained about U.S. military activities near the Chinese coast,and in recent months held a succession of naval exercises accompanied by warnings from the Chinese People8217;s Liberation Army about Washington8217;s intentions.

But Hu is looking to visit the United States early next year,an important but tricky political trophy for the leader as he enters his final two years as President.

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Both sides appear keen to keep a lid on tensions before that visit,as well as G20 and regional summits later this year when Obama and Hu will also have chances to meet.

8220;China looks positively on the fresh progress made in China-U.S. relations,and we are willing to work together with the United States in promoting the advance of healthy and stable China-U.S. relations,8221; said Hu.