China presses US over investments

[WestVirginiaRebel]

Financial Times:

Beijing will push Washington to allow Chinese state-owned enterprises greater access to invest in the US at bilateral talks in Washington on Monday.

In turn, the US will press China to liberalise its financial system.

The twice-yearly talks will feature for the first time a joint session with senior diplomats and military officials. China’s military has been a reluctant interlocutor with the US, periodically freezing ties in protest over issues such as arms sales to Taiwan.

“Our goal is to create greater understanding around issues that have the potential for miscalculation and inadvertence in our relationship,” said Kurt Campbell, a senior US state department diplomat.

The US complaint that China undervalues its currency, making its exports cheaper, will also be discussed. David Loevinger, the US Treasury’s senior official for China , said the renminbi had appreciated in real terms at an annualised rate of about 10 per cent since last June, driven in part by Chinese inflation.

He said the US “absolutely” sees a change in tone in discussions over the currency, as the Chinese increasingly see appreciation as a tool to control inflation and the impact of rising commodities prices.

While Washington’s focus is on the US demands, Zhu Guangyao, Chinese vice-minister of finance, said Beijing would raise complaints about companies “hitting hurdles in investing in America”.

“We demand that the US government offer a beneficial environment for our companies, particularly our state-owned companies,” he said in Beijing.
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