20 January 2011
Obama and Hu Work to Strengthen Economic Relations
Washington — During a one-day summit between President Obama and Chinese President Hu Jintao, the two leaders agreed to take further steps to liberalize global trade and investment and to oppose measures that could lead to protectionism.
Obama and Hu emphasized “their strong commitment” to engage in across-the-board talks to successfully conclude the World Trade Organization’s Doha Development Agenda, also known as the Doha Development Round, which would foster greater global trade liberalization, according to a U.S.-China joint statement. Negotiations to lower trade barriers among trading nations began in November 2001 but have stalled over tariff issues and trade remedies since 2008.
As part of a bilateral economic and trade initiative, China announced contracts for more than $45 billion in increased U.S. exports covering industries including jet aircraft, agriculture, machinery, chemicals, auto parts and computer software. The White House said in a fact sheet that the increased exports will help support an estimated 235,000 jobs in the United States.
The exports, announced January 19 during a state visit by Hu, will further a goal announced by Obama in 2010 to expand U.S. exports over the next five years and rebalance the U.S. economy from one that is largely consumer-driven to one that offers a greater share of growth from exports.
“I am very pleased that we’ve completed dozens of deals that will increase U.S. exports by more than $45 billion and also increase China’s investment in the United States by several billion dollars,” Obama said at a joint press conference at the White House January 19.
Hu’s state visit marked the eighth time the two world leaders have met face to face in two years and underscores a significant effort by the United States and China to expand the relationship that began 32 years ago with the normalization of relations under President Jimmy Carter and Chinese paramount leader Deng Xiaoping, Obama noted.
Obama made a state visit to China in November 2009 and invited Hu to make a similar visit to the United States. During Hu’s visit with Obama, he also met with members of the U.S. Congress and business leaders in Washington and Chicago before returning to Beijing.
“We have an enormous stake in each other’s success,” Obama said. “In an interconnected world, in a global economy, nations — including our own — will be more prosperous and more secure when we work together.”
“China’s success has brought with it economic benefits for our people as well as yours, and our cooperation on a range of issues has helped advance stability in the Asia-Pacific and in the world,” Obama added during arrival ceremony remarks January 19.
The United States exports $100 billion in goods and services annually to China, which is its largest trading partner after Canada and Mexico. U.S. exports to China are growing almost two times as fast as overall U.S. goods and services exports, the White House said.
The more than $45 billion in new exports includes a $19 billion package for 200 Boeing-manufactured jet aircraft over a three-year period, 2011–2013, that will support more than 100,000 American jobs, including Boeing and its suppliers throughout the United States. In addition, the package includes 70 signed contracts for $25 billion in U.S. exports from 12 states, the White House said.
In addition, 11 investment contracts were signed worth $3.24 billion. More export transactions were announced or showcased that add $12 billion to the $45 billion announced January 19.
“These cross-border collaborations, both public and private, underpin the expanding U.S.-China commercial partnership, contributing to economic growth and development in both countries,” the White House said. “A number of these transactions highlight the increased collaboration in such areas as clean energy and green technologies.”
The White House also said that China has agreed to hold accountable violators of intellectual property rights (IPR) on the Internet, including those who conduct counterfeiting and piracy against others, and to strengthen IPR protections in China’s libraries.
U.S. Energy Secretary Steven Chu and Chairman Chen Qiufa of the China Atomic Energy Authority signed an agreement to establish a jointly financed center of excellence in China to promote effective nuclear security and safeguards, the White House said. Obama and Hu agreed to the arrangement during the April 2010 Nuclear Security Summit held in Washington. It will provide training to improve security at nuclear facilities and provide stronger accounting for nuclear materials.
The United States and China also agreed to cooperate in research on energy efficiency, clean coal and clean vehicles through a newly established consortium under the U.S.-China Clean Energy Research Center. And the United States signed an agreement with the Chinese Academy of Sciences to promote cooperation in a range of energy, biological and environmental sciences.
(This is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://www.america.gov)
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