Economic Issues Take Stage In U.S.-China Talks
Economic issues were front and center during talks between President Obama and President Hu on Wednesday, and in their session with CEOs from both countries. NPR's John Ydstie discusses what progress might have been made on three big issues: trade, the protection of intellectual property and the dispute over China's currency.
ROBERT SIEGEL, Host:
Economic issues were front and center today during talks between President Obama and President Hu. This afternoon, the two met with a handpicked group of high-level American and Chinese business leaders.
NPR: trade, the protection of intellectual property and the dispute over China's currency. John, first on that issue, trade. The White House released a list of exports to China involving American companies. Tell us about that.
JOHN YDSTIE: In fact, the orders for some of these Boeing jets actually go back several years. And they're being showcased, in the words of the White House, at this summit. The point is that the White House is - it's trying to show that U.S. economic relations with China, despite their problems, are beneficial to both countries. U.S. exports to China last year total $100 billion and those exports are growing twice as fast as any other country.
SIEGEL: But as you say, they're showcasing the good news. There are still significant barriers and problems that U.S. companies face when they try to participate in the Chinese market.
YDSTIE: One would ease the requirement that U.S. companies would have to essentially share intellectual property in order to bid on Chinese government contracts. Business leaders told me they're encouraged, but they're anxious to see how the commitment is enforced before they begin celebrating a victory.
SIEGEL: Now, what about the U.S. concern that China is intentionally suppressing the value of its currency to make its exports cheaper?
YDSTIE: Well, interestingly, the U.S. criticism has been dialed back a little there. President Obama still said today, China needs to let its currency rise, but the U.S. is now less worried because an indirect force is helping out - inflation. Rapid inflation in China's domestic economy is raising the costs of labor and other inputs like steel that go into it. That makes Chinese exports more expensive and U.S. products cheaper and more competitive, so it's having the effect that a hike in the value of the Chinese currency would have.
SIEGEL: So the U.S. is expressing satisfaction with the result, if not with the reason for the result.
YDSTIE: Exactly.
SIEGEL: Thank you, John. That's NPR's John Ydstie.
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