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Economic Daily News: Can Obama-Xi meeting change U.S.-China ties?

Economic Daily News: Can Obama-Xi meeting change U.S.-China ties?

U.S. President Barack Obama held a meeting with Chinese President Xi Jinping at the White House last week. Prior to Xi's U.S. visit, China's economy was encountering headwinds, as the stock market plummeted and the Chinese currency depreciated sharply. By comparison, the U.S. economy was outshining the rest of the world, and a strong U.S. dollar highlighted the revival of America's national strength. The Chinese side has defined Xi's U.S. trip as a move to "build confidence and dispel doubts." Although the meeting did not achieve any major breakthroughs, it can be considered as satisfactory. At present, the most divisive and sensitive issues between the United States and China are cybercrime and the territorial disputes in the South China Sea and East China Sea. On the cybercrime issue, both sides agreed that "neither country's government will conduct or knowingly support cyber-enabled theft of intellectual property." They also pledged to jointly fight cybercrime and establish a "high-level joint dialogue mechanism" to address the issue. On the South China Sea issue, they agreed to establish a code of conduct to prevent military confrontation in the region. Regarding economic matters, Xi, to a certain extent, allayed the outside world's doubts about China's economy. In a speech at the 8th U.S.-China Internet Industry Forum in Seattle, Xi said Beijing will stick firmly to its path of market economy reform and China's economic growth will remain strong. He said China is opposed to competitive currency devaluation and will not lower the value of the Chinese yuan to stimulate exports. The world should not worry too much about changes in China's foreign exchange reserves, Xi added. It would be unrealistic to expect the Obama-Xi meeting to change the structural problems in U.S.-China relations. However, the tensions between the two sides are expected to ease temporarily and their economic interactions are likely to get back on track. If there are no surprises, the Chinese yuan will not fluctuate much before the end of the year. Chances are high that the U.S. Federal Reserve may raise interest rates by December. As the world's two largest economies, the United States and China should strengthen their cooperation to rebuild global financial order and create rules that will benefit the world. (Editorial abstract -- Sept. 28, 2015) (By Y.F. Low)


Updated : 2021-09-26 10:33 GMT+08:00