China offers promises but no quick help

Hu stops short on trade, security issues

April 21, 2006|By PAUL RICHTER | PAUL RICHTER,LOS ANGELES TIMES

WASHINGTON -- Chinese President Hu Jintao promised President Bush long-term economic reforms yesterday but offered no immediate concessions on the trade and security issues that threaten the two countries' relationship.

Hailed with a 21-gun salute on a sunlit White House lawn, Hu declared that China was committed to overhauling gradually the export-driven economy that has piled up a $202 billion trade surplus with the United States and brought calls in Congress for protectionist retaliation.

But Hu stopped short of the quick action the Bush administration and some in Congress have sought on currency reform and intellectual property protection. He also offered Bush no specific new help in dealing with the Iranian and North Korean nuclear programs.

Chinese hopes of boosting Hu's domestic standing with a carefully choreographed White House ceremony were set back when an activist from the outlawed Falun Gong religious sect interrupted the first several minutes of the Chinese president's formal remarks with heckling. President Bush looked on with visible anger as Secret Service officers removed the woman, who was allowed access to a press viewing stand as a reporter for the group's international newspaper, the Epoch Times.

The woman, identified as Wang Wenyi, 47, screamed, "President Hu, your days are numbered," and told Bush, "Make him stop persecuting Falun Gong."

Bush apologizes

Later, as they began a 90-minute meeting in the Oval Office, Bush told Hu that the incident was unfortunate and that he was sorry it had taken place, U.S. officials said later. Hu responded "graciously," one official said, but another U.S. official acknowledged concern that the Chinese would be angered that a White House lapse had damaged the event.

A White House official defended the admission of the activist, saying she had submitted proper credentials. "We can't go around denying access to reporters when we're going around the world trumpeting that to do so is incorrect," said the official, who declined to be identified because of the diplomatic sensitivity of the subject.

The meeting on the lawn was marred by another gaffe when a White House announcer, treading on a sensitive subject, said over a loudspeaker that the band was about to play the national anthem of the "Republic of China." That is the official name of Taiwan, the self-governing island off the coast of mainland China that Beijing views as a renegade province. Mainland China is called the People's Republic of China.

The Chinese have hoped that Hu's visit would help reduce pressures from Congress and some in the administration for punitive action because of China's perceived unwillingness to reduce the trade imbalance or help the United States on non-proliferation and other key security challenges.

Hu indicated a general desire to work with United States officials on those issues.

"We understand the American concerns over the trade imbalances, the protection of the intellectual property rights, and market access," Hu said. "We have taken measures and we'll continue to take steps to properly resolve the issues."

But Hu did not lay out any timetable for action on his nation's currency, which some experts believe may be overvalued by as much as 40 percent, putting U.S. goods at a competitive disadvantage, and inflating the U.S. trade deficit.

After the day's meetings, U.S. officials focused on Hu's public commitment to try to move China gradually to an economy based on domestic consumption rather than the exports that have bedeviled the relationship with the United States. The Beijing government may seek to do this by encouraging more consumer spending and reducing the nation's high personal savings rate, the officials said. If Chinese domestic demand increases, that would mean more imports from the United States, cutting the trade imbalance.

Hu promised "we will continue to pursue the strategy of boosting domestic demand and ensuring fast and balanced economic and social development in China."

But it also was clear that Hu left Bush unsatisfied on his request for help to restrain the nuclear ambitions of Iran and North Korea.

Bush told reporters that in his Oval Office meeting with Hu he had asked the Chinese president to use his leverage to win greater cooperation from neighboring North Korea, which has refused to rejoin stalled six-nations talks on its nuclear program. Bush also pressed Hu to join the United States and other allies in building pressure on Iran through the United Nations Security Council.

But Hu said little about China's intentions on the Iranian nuclear issue, except to repeat statements that it intends to work through diplomacy and negotiations. "Both sides promised to continue their effort to seek a peaceful resolution," Hu told reporters after the meeting with Bush.

On North Korea, Hu pointed out to Bush that the North Koreans are unhappy with "defensive steps" the United States has taken to try to halt North Korea's alleged counterfeiting of U.S. currency, and alleged drug trafficking.

"I hope the parties will be able to further display flexibility, work together and create the necessary conditions for the early resumption of talks," Hu said.

Paul Richter writes for the Los Angeles Times.

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