China Allows U.S. Fund Sales
Reuters reports
China on Tuesday pledged easier access for U.S. companies to key sectors of its economy by removing barriers to its huge market in government contracts and offering a foothold to U.S. mutual funds.
The pledges were made in two days of talks between the world's two biggest economies which ended with both sides hailing progress in their often tense relationship.
"We are seeing very promising shifts in the direction of Chinese economic policy," Treasury Secretary Timothy Geithner said.
The annual Strategic and Economic Dialogue yielded more results on economic issues than some analysts had expected, although many remained skeptical China's market-opening vows would translate into concrete benefits for U.S. business.
The talks between top U.S. and Chinese officials carried extra significance because domestic politics may hamper decision-making next year ahead of a U.S. presidential election and Chinese leadership succession.
While some advances were made on the economic track, there was scant movement on thorny diplomatic issues.
"The outcome of this round of meetings shows a clear understanding on both sides that the two countries have shared long-term economic interests and there is scope for a mutually beneficial bargain," said Eswar Prasad of the Brookings Institution in Washington.
"The real flashpoints are on political and security issues, including human rights," he added.
But Secretary of State Hillary Clinton, in an interview with The Atlantic magazine, said disputes over human rights would not stop U.S. engagement with China.
"We don't walk away from dealing with China because we think they have a deplorable human rights record," Clinton said, according to a transcript released by the State Department.
Both sides repeated their stances on North Korea, where China has resisted U.S. pressure to act more forcefully to persuade Pyongyang to back down from confrontation and resume nuclear disarmament talks.
The two sides did agree to step up coordination on Afghanistan, and discussed the political upheavals across the Middle East and North Africa, which U.S. officials say carry worrying resonance for China's leadership.
They reiterated their positions on Iran but made no new announcements. China has reluctantly backed U.N. sanctions aimed at curbing Tehran's nuclear ambitions, but U.S. officials say that some Chinese entities are not complying with them and have urged Beijing to tighten up.
Even so, a senior Chinese finance official said the talks were a "win-win" for both countries. China claimed Washington gave ground by easing restrictions on high-tech exports though U.S. officials said only they would weigh Beijing's concerns.
