THE EVENT: Chinese President Hu Jintao is in Washington on
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-rights issues.
On Wednesday, after a formal welcoming ceremony, Hu met with
President Barack Obama in the Oval Office. Later in the morning, Hu
met with more than a dozen chief executives of some 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 was scheduled to have lunch with U.S. Vice President Joseph
Biden and U.S. Secretary of State Hillary Clinton. Also on the
agenda is a press conference, where Obama and Hu are taking
questions, a rarity for the discreet Hu. On Wednesday evening, Hu
will attend a state dinner at the White House.
On Thursday, Hu will meet with congressional leaders on Capitol
Hill and will travel to Chicago. He will fly back to Beijing on
Friday.
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.
Hu, suggesting both sides are unlikely to give ground on some
issues, said the two sides "should adopt a long-term perspective"
while acknowledging 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 AT FOREFRONT OF MEETING: Much of Hu's visit centered
around business between the U.S. and China.
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 Wednesday, the White House issued a press release dealing
with some of the concerns of U.S. companies. The statement said
China has committed to expanding access to U.S. manufactured goods
and to strengthening enforcement of intellectual-property rights.
China has also pledged to eliminate during government-procurement
decisions policies that discriminate against where a product is
made.
For his part, Hu said he welcomes U.S. businesses to China and
stressed that U.S. companies will get "equal treatment."
CONGRESS SPEAKS OUT: At a hearing of the House foreign-affairs
panel convened to coincide with Hu's visit, Republicans and
Democrats criticized Hu as a dictator who runs a regime that
imprisons political activists, ignores human-right concerns,
exploits African countries for minerals, antagonizes neighbors in
Asia and uses the amount of U.S. debt it holds to exploit its
economic relationship with the U.S. The lawmakers expressed outrage
that the U.S. would welcome Hu as a fellow global leader.
FOREIGN-EXCHANGE CONCERNS: The dollar weakened Wednesday as Hu's
visit 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:
Chinese President Hu Welcomed At White House, Vilified On Capitol Hill
Obama Begins Meeting With CEOs, China's President Hu
US May Punish China Firms Evading Iran Sanctions -Clinton
GE Sees Pacts With Chinese Partners Driving $1B In US Exports
White House: China To Expand Market Access For US-Made Goods
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