THE EVENT: Chinese President Hu Jintao is in Washington
Wednesday visiting 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 after a formal welcoming
ceremony at the White House South Lawn is a meeting between Hu and
President Barack Obama. Hu also was scheduled to 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.
WELCOMING HU: In the formal welcome on the South Lawn, Obama and
Hu were upbeat, but they acknowledged a number of hotly contested
issues that will be on the agenda for this week's state visit.
Hu, suggesting both sides are unlikely to give ground on some
issues, said the two sides "should adopt a long-term perspective"
while acknowledging each other's differences.
The two leaders and their proxies were set to meet throughout
the day Wednesday, with Hu and Obama retiring to the White House
Oval Office after the welcoming ceremony.
BUSINESS IS GOOD, BUT U.S. COMPANIES WARY: U.S. and Chinese
companies have completed about $45 billion worth of export deals,
including the sale of $19 billion of Boeing aircraft, in the run-up
to Hu's visit. The other deals fall in the areas of clean energy,
computer technology and transportation, among others, and are set
to support 235,000 jobs.
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 high 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:
White House Fact Sheet On US-China Commercial Deals
US-Chinese Firms Reach $45B In Export Deals In Run Up To Hu Visit
Obama, Hu See Great Opportunities In Cooperation
Dollar Weakens As Debt Fears, Hu Visit Prompt Selling
China Yuan Hits Another High Late; US, China President Meet
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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