THE EVENT: Chinese President Hu Jintao is in Washington
Wednesday to visit with U.S. political leaders and corporate
executives.
Many issues face China and the U.S. as Hu makes his first visit
to the White House since 2006 and marks China's first official
state visit since 1997. Among them: Beijing's handling of North
Korea, China's military expansion, its exchange-rate policies, its
treatment of foreign businesses and human-right issues.
Among the events scheduled for the day are a ceremony at the
White House South Lawn at 9 a.m. EST and a meeting with President
Barack Obama. At 11 a.m., Hu will meet with some executives of the
largest U.S. companies, including Boeing Co. (BA) CEO Jim McNerney,
Microsoft Corp. (MSFT) CEO Steve Ballmer, and General Electric Co.
(GE) CEO Jeffrey Immelt. Hu will have lunch with U.S. Vice
President Joseph Biden and U.S. Secretary of State Hillary Clinton
and will attend a state dinner at the White House.
INITIAL COMMENTS: In their morning session, Obama and Hu were
upbeat. Obama said he sees "great opportunities" for U.S.-China
relations. Hu said he is pleased to be in the U.S., and he came to
strengthen ties between the U.S. and China. Hu said he hopes his
visit will open a "new chapter" in the relations between the two
countries, and said the U.S. and China should step up their
partnership toward development and peace.
BUSINESS IS GOOD, BUT U.S. COMPANIES WARY: On Tuesday, the day
Hu arrived in Washington, a number of energy deals were announced
between U.S. and Chinese companies.
Among them: Alcoa Inc. (AA) and China Power Investment Corp.
will collaborate on a broad range of aluminum and energy projects,
American Electric Power Co. (AEP) will team with China Huaneng to
evaluate carbon-capturing technology and GE Energy will form a
joint venture with Shenhua Group Corp. to sell clean-coal
technologies.
But U.S. businesses are wary that they aren't receiving fair
treatment in China from Chinese regulators and are wary of
intellectual-property theft. U.S. companies also complain that big
government-procurement contracts in China are rigged in favor of
Chinese companies.
FOREIGN EXCHANGE CONCERNS: The dollar weakened Wednesday as Hu's
visit to the U.S. refocused attention on the U.S. fiscal imbalance
and China's controversial currency peg. In the Asian trading
session Wednesday, the People's Bank of China set the parity rate
of the yuan to a record low against the dollar.
China's currency move came on the heels of Tuesday's news that
China, the largest foreign creditor to the U.S., was a net seller
of U.S. Treasury debt in November. The development resuscitated
fears about America's bloated budget deficit and its huge funding
needs.
For Dow Jones coverage see:
Obama, Hu See Great Opportunities In Cooperation
Dollar Weakens As Debt Fears, Hu Visit Prompt Selling
Business Turns Cool to Hu As China Flexes Its Clout
U.S. Seals Energy Deals as Hu Arrives for Visit
Clinton Cannot Say Whether China Is Friend Or Foe
US, China To Sign Pact On Nuclear Security Center In China
Hu's Feel-Good Tour Of US Is Likely To Be A Bit Chilly
Obama, Hu To Meet With CEOs From Goldman, Boeing, Lenovo
Chinese President Hu Lands In US For Visit With Obama
Commodity Traders Monitor Hu's Visit For Chinese Demand Signals
For more coverage, search R/CH
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