What they agreed on ... and what they left out at the China-US Strategic and Economic Dialogue
The South China Sea and human rights remained differences but there was common ground on steel output and North Korea
INVESTMENT
China promised to submit a “negative list” for a US-China bilateral investment treaty next week. Washington welcomed Chinese investment in the United States and said it was ready to seize opportunities created by China’s supply-side structural reform and increase investment.
China will grant a 250 billion yuan (HK$300 billion) investment quota to US firms under the renminbi qualified foreign institutional investor scheme.
STEEL INDUSTRY
The US said China agreed to cut output, but Beijing cautioned that private companies had become key players and imposing orders on the industry was no longer feasible.
NORTH KOREA
Both sides agreed not to recognise North Korea as a nuclear state and pledged to exert joint efforts towards stopping any further provocations. They said they were determined to enforce sanctions against Pyongyang.
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FINANCIAL SECTOR
China would take steps to open its financial sector wider to US companies.
CURRENCY
Beijing agreed there was no reason for a sustained weakening of its currency. It reaffirmed a commitment to not engage in competitive devaluations or target the exchange rate for competitive purposes. China committed to continue “market-oriented exchange rate reform that allows for two-way flexibility” of the yuan. Both sides agreed on a policy framework for the private sector to improve yuan trading in the US.
CLIMATE
They convened a joint session on climate change to promote the full roll-out of the Paris Agreement.
China and US agree to tackle steel glut and enforce North Korean sanctions as high-level talks end
DIFFERENCES
South China Sea: Beijing said talks should only include the countries involved. But both sides would work on improving confidence measures, especially rules of behaviour for safety and maritime encounters
Human rights: The US voiced concerns over China’s crackdown on lawyers and religious freedom, and the impact of a new law on non-governmental organisations. Beijing said the law wouldn’t make China less open.
WHAT’S MISSING
Observers expected the two nations to discuss Hong Kong, but neither side made any mention of the issue in their public remarks.
