Bush Seeks Hu's Help on Iran, Accepts Invitation to Visit China

Bloomberg:

U.S. President George W. Bush and China's President Hu Jintao agreed to step up diplomatic efforts to curb Iran's nuclear weapons development, though Hu wouldn't commit to supporting sanctions against the Persian Gulf nation.

Bush also accepted Hu's invitation to visit China after a summit of Asia-Pacific leaders in November, Mike Green, director of Asian affairs at the White House National Security Council, said following Bush's hour-long meeting with Hu last night. Much of the discussion focused on economic issues, and Bush raised U.S. concerns about China's currency, Green said.

The U.S. view is that China's central bank made ``a good first move'' in July to begin revaluing its currency, Green told reporters. Still, ``it's in China's long-term economic interests and the world's economic interests for China to make further moves toward a flexible and market-oriented exchange rate.'' Hu didn't address U.S. concerns ``in so many words,'' Green said.

Bush and Hu met in New York, where world leaders began gathering for ceremonies marking the 60th anniversary of the creation of the United Nations. The U.S. president said one of the top items on his agenda with Hu was discussing how to curb the spread of nuclear weapons.

China is a key partner with the U.S. in trying to persuade North Korea to give up its nuclear weapons. Bush wants China's support to stop Iran from gaining such arms.

`Vital Point'

On Iran, ``the president stressed the importance of China working with us to have a successful diplomatic resolution,'' Green said. Bush said before the meeting that he wanted to discuss the range of options, which could include bringing the matter to the UN Security Council where China holds a veto.

``We didn't come away with a clear commitment about specific tactics,'' Green said. Rather, the tone of the discussion was ``a general agreement to step up coordination on this.'' READ MORE

China reaffirmed it will work with the U.S. and four other nations in negotiations with North Korea.

``We stand ready to step up our commitment and cooperation with the United States so we can create progress in the six-party talks,'' Hu said through a translator before going into the meeting with Bush.

Talks involving the U.S., China, Russia, Japan, South Korea and North Korea resumed in Beijing yesterday. The last session ended Aug. 7 without agreement after North Korea insisted on retaining the capacity to produce atomic power and demanded the U.S. withdraw nuclear weapons from close proximity to the North.

Economic Issues

Economics was another major point of talks for Hu and Bush.

Hu said China was ``working hard'' to address the trade imbalance with the U.S. that has been a source of tension.

``There is no denial that our bilateral trade has developed so fast and so well that we may have some frictions,'' Hu said through a translator. China is committed to ``gradually'' addressing the imbalance, he said.

The U.S. trade deficit with China was a record $162 billion last year. U.S. business groups are increasing pressure on political leaders in Beijing to allow more foreign investments and imports or risk punitive remedies proposed by some members of Congress, such as tariffs on Chinese goods.

``China does not intend to pursue a large trade surplus,'' Hu said.

Policy Challenge

``China's successful integration into the global economy is the single biggest foreign policy challenge facing the U.S.,'' said Myron Brilliant, vice president for China of the U.S. Chamber of Commerce. ``China is an issue that is not going away.''

The chamber said in its fourth-annual report on China's compliance with its obligations to the World Trade Organization that China is undercutting its pledges on foreign trade by adopting measures that provide cheap credit, subsidies and technical aid to domestic companies.

Hu also promised China also would ``enhance'' enforcement of intellectual property rules.

Anti-pirating measures and protection of U.S. intellectual property was a ``major focus of the meeting,'' Green said. Hu spoke in ``in a broader sense'' about taking ``measures with us and on their own to help increase the prospects for U.S. exports to China,'' Green said.

Bush and Hu also discussed Taiwan, which the U.S. supports with economic and military aid. China regards the island as a renegade province.

``The proper handling of the Taiwan question holds the key to the sound and steady growth'' of U.S.-China relations, Hu said.

Bush will take a two-day trip to China in the third week of November after the Asia-Pacific Economic Cooperation meeting in South Korea. Bush also plans a stop in Japan during the trip, according to a U.S. official in Tokyo.