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China and US to talk about trade China and US discuss trade rows
(about 3 hours later)
US and Chinese officials are due to meet in the eastern city of Hangzhou in the 20th meeting of the US-China Joint Commission on Commerce and Trade. US and Chinese officials have been holding talks in China on trade, clean energy and climate change.
The trade talks come just a couple of weeks before the US President Barack Obama makes his first visit to China. The meeting comes less than three weeks before US President Barack Obama's first visit to China.
The Americans say these talks are an important opportunity to engage China at a very senior level on specific trade issues. The talks are being held amid simmering trade disputes in several areas, claims of protectionism and a wide US trade deficit with China.
The US and China are engaged in several trade disputes. US Commerce Secretary Gary Locke said it was "critical" to demonstrate that the two countries could work together.
US Commerce Secretary Gary Locke is leading the American delegation. Mr Locke is leading the American delegation for the 20th meeting of the US-China Joint Commission on Commerce and Trade, being held in the eastern city of Hangzhou.
"It is critical to make concrete, demonstrable progress today to demonstrate to the people of both the US and China that we can work together," Mr Locke said in his opening remarks on Thursday.
Vice Premier Wang Qishan, leading the Chinese side, urged both sides to "stand firmly against all forms of trade protectionism and work together to promote the recovery of economic growth".
"Economic interdependence deepens day-by-day, and one cannot do without the other," he said.
Tyre disputeTyre dispute
The Chinese side is represented by vice premier Wang Qishan. On Wednesday, China had announced it would investigate suspicions that the three big US automakers were getting government subsidies or selling their products in China at less than the cost of production.
Mr Locke signalled that energy co-operation was likely to be an important topic around the table. The US trade deficit with China is the world's largest
US firms are seeking access to the potentially lucrative Chinese market for clean energy and alternative fuels. If so, China could raise its tariffs on US auto imports - a move unlikely to harm Ford, General Motors or Chrysler as most of the cars they sell in China are made there in joint ventures with local partners.
China and the US are involved in a number of different trade disputes, but of course the politicians are seeking to play down their differences ahead of the meeting. But the issue has the potential to further sour the trade climate ahead of President Obama's visit to China in mid-November.
Asked about a recent US decision to impose tariffs on cheap tyres Mr Locke insisted that some of the cases that appear in the newspaper headlines represent only a small fraction of Chinese exports to the US. Last month, Mr Obama imposed punitive duties of up to 35% on imports of Chinese-made tyres.
China responded with an "anti-dumping" probe into US car parts and chicken meat imports.
US manufacturers have long complained that China's management of its currency is one of the main reasons for the yawning bilateral trade deficit.
With recession in the US slowing imports, the deficit dropped 15% in the first eight months of 2009 to $143.7bn - its biggest with any country - compared to the same period the year before.
Other "priority market access issues" would also be discussed, Mr Locke said.
The WTO wants China to allow more access for US entertainment firms
The US wants to see Chinese restrictions lessened on US agriculture, pharmaceuticals, telecommunications and business services, and improved protection of intellectual property rights and co-operation on clean energy technology.
US officials have said they do not expect the trade issues to affect overall ties.
The two countries are expected to discuss climate change at Hangzhou and to sign a memorandum of understanding on energy co-operation.
But on Wednesday, the senior US climate change negotiator, Todd Stern, said the two countries would not reach a "broad agreement per se" during President Obama's visit to China next month.