Wang Yang

More concrete results will emerge from upcoming Sino-US dialogue, analysts say

Closer co-operation on Korean nuclear threats and growing mutual economic reliance will produce results, analysts say

PUBLISHED : Monday, 15 April, 2013, 12:00am
UPDATED : Monday, 15 April, 2013, 3:30am

The closer co-operation between China and the United States over North Korea's continuing nuclear threats will provide new momentum in the upcoming China-US strategic and economic dialogue, analysts say.

That is also in view of the increasingly mutual reliance between the world's two largest economies and the need to revive their economic dynamism amid the global uncertainty, according to analysts.

The US Treasury Department said on Saturday that the fifth meeting of the US-China Strategic and Economic Dialogue (S&ED) would be held in Washington from July 8 to 12.

Vice-Premier Wang Yang and State Councillor Yang Jiechi will head the Chinese delegation meeting their US counterparts led by Treasury Secretary Jack Lew and Secretary of State John Kerry.

This will be the first high-level and comprehensive dialogue between Beijing and Washington after both sides underwent major reshuffles of cabinets this year.

"From the closer co-operation on the Korean issue as a result of frequent consultations, including telephone conversation between President Obama and Xi Jinping and the visits by US Treasury Secretary Jack Lew and Secretary of State John Kerry, one can expect the new momentum in the upcoming dialogue," said Shi Yinhong , director of the Centre for American Studies at Renmin University.

Hao Hong, managing director and head of research at Bank of Communications (International), said Beijing's co-operation with Washington on Pyongyang's nuclear belligerence would help boost co-operation in the upcoming dialogue.

"I can speculate that the upcoming economic and strategic dialogue will produce more concrete results than any previous dialogues for two reasons," said Hong.

"First, the closer co-operation between the two powers over the Korean nuclear threats will provide new momentum for closer co-operation in other areas.

"Second, both economies need each other more than ever in recent memory given the current global uncertainty."

Hong said while Obama saw boosting US exports as a way of reviving America's economy, China was also under unprecedented pressure to explore new export markets in the US and elsewhere for investment opportunities amid Europe's protracted downturn.

Tao Wenzhao , a research fellow at the Chinese Academy of Social Sciences' Institute of American Studies, said that while long-existing strategic and economic issues - such as regional and global security, trade deficits and intellectual copyrights - will continue to be on the agenda, he expected two major issues - cyberspace security and access to Chinese markets - to top the US agenda in the upcoming dialogue.

Tao said there were also two major issues that top China's concerns. "Beijing will press Washington to ease its restriction on high-tech exports to China, as well as Chinese investment in the US," Tao said.

Chinese leaders, Tao said, were particularly upset by Washington's rejection of China National Offshore Oil Corporation's 2005 bid for Unocal Corp, and Huawei Technologies' failed attempt in 2011 to acquire 3Leaf Systems.

According to Chinese data, the US has overtaken Europe to become China's No1 export market last year, with bilateral trade hitting a record US$484.68 billion.

Hong said the once-hotly debated issue about the yuan's relative undervaluation appeared to be waning recently following the currency's recent fast pace of appreciation.