HONOLULU: Barack Obama and Hu Jintao
presented dueling trade agendas as an antidote to weak global growth as the
U.S. and Chinese presidents faced off on Saturday at a Pacific summit where
Europe's debt crisis loomed large.
The heads of the world's two biggest economies
laid bare their countries' growing rivalry and some of their entrenched
differences in backtoback speeches to executives at the AsiaPacific Economic
Cooperation summit in Honolulu.
Obama took China to task for currency and
trade practices issuing a veiled threat of more punitive action unless it
"plays by the rules" as he sought to reassert U.S. influence in a
region he said was more vital than any other to America's interests.
Hu pushed back, insisting on more clout for
China as an emerging global power. He also made clear Beijing prefers to work
through existing global trade architecture rather than allowing itself to be
subject to U.S.led efforts to pry open AsiaPacific markets.
Obama and Hu will meet face to face later on
Saturday.
Hosting the APEC summit in his native Hawaii,
Obama said earlier the "broad outlines" of a deal had been reached on
the TransPacific Partnership, a regional free trade pact being negotiated by
the United States and eight other countries.
It was hailed by U.S. officials as the
summit's signature achievement and a possible template for an eventual APECwide
free trade zone. APEC's 21 members make up the world's most economically
dynamic region and account for more than half of global output.
The deal being sought with China's neighbors
also reflected a U.S. drive to counter Beijing's competitive threat.
With Europe's debt crisis sending shock waves
around the globe, this year's APEC meeting was emerging as a forum to push the
euro zone to sort out its problems and for APEC members to strengthen defenses
against the fallout.
Fostering free trade is one of the few steps
leaders can take to spur global growth when fiscal and monetary measures are
virtually exhausted in many developed countries.
While insisting the United States was
"rooting for China to grow," Obama urged Beijing to do more to allow
its currency to appreciate, create a level playing field on trade and prevent
theft of U.S. intellectual property.
"The bottom line is that the United
States can't be expected to stand by if there's not the kind of reciprocity in
our trade relations and our economic relationships," Obama said.
"Where we see rules being broken, we'll speak out and in some cases we'll take
action.
Speaking before Obama, Hu sought to soothe the
concerns of foreign businesses over market conditions in China.
He repeated China's commitment to reform and
opening up its markets but he offered little new to address concerns that
American business cannot compete fairly.
At the same time, he insisted China be given
what it sees as its rightful place in world affairs. "The new mechanism
for global economic governance should reflect the changes in the world economic
landscape," Hu told executives.
"It should observe the principle of
mutual respect and collective decisionmaking and increase the representation
and voice of emerging markets and developing countries."
China has been reluctant to sign trade deals
that would subject it to U.Sled efforts to further open its economy to foreign
players because that would put competitive pressure on its stateowned
enterprises.
Hu told the business leaders he favors
pursuing more open trade through bodies such as the World Trade Organization,
saying "we should uphold the multilateral trading regime and deepen
regional integration ... fulfill our commitments, firmly oppose and jointly
resist protectionism of all forms."
Hu has touted trade with China as a way to
boost U.S. growth and help Obama achieve his goal of doubling exports. With
Europe edging toward a recession, fastgrowing Asia led by China is vital to
sustaining global economic growth.
Developing Asia is expected to grow 8 percent
in 2012, roughly four times faster than the United States, according to
International Monetary Fund forecasts.
The Star
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment