China and US conclude talks in Washington on positive note

Two days of talks billed as a “strategic and economic dialogue” between China and the US concluded Tuesday 28 July in Washington DC, with nothing concrete but with broad agreement on ways to combat the world recession and on climate change. The two say they are now closer on a variety of issues, among them US strategic concerns on Iranian and North Korean nuclear ambitions. On the economic front, the Chinese government worries about the value of its massive holdings of US treasury debt, given huge US budget deficits and the resulting danger of inflation, and very low US savings. The US wants China to increase domestic spending to reduce its reliance on the export market, and to show flexibility on its exchange rate. Both remain committed to open trade and say they vowed to resist protectionism. US President Obama has called for a concerted effort to reduce carbon emissions, but developing economies like China hesitate because they fear this will cramp their growth. BBC, CNN, Le Temps (Fre), NZZ (Ger)