Trade focus for Obama China talks

**US President Barack Obama is to meet Chinese Premier Wen Jiabao on the last day of his much-watched visit to the rising Asian nation.**Trade disputes are likely to be on the agenda when Mr Obama has lunch with China’s second-highest leader, who is responsible for the economy.

The US president will then pay a short visit to the Great Wall.

On Tuesday Mr Obama and President Hu Jintao agreed to co-operate on matters such as climate change and North Korea.

Speaking after two hours’ of talks, Mr Obama said he had also raised human rights issues - including Tibet.

Mr Hu said the two nations could discuss such issues “in a spirit of equality… and non-interference in each other’s internal affairs”.

Mr Obama is on a week-long visit to the East Asian region. After China he flies to the South Korean capital, Seoul, for talks expected to focus on North Korea’s nuclear ambitions.

Trade rows

Despite Tuesday’s show of goodwill, correspondents said the issue of trade appeared to be a thorny one between Mr Hu and Mr Obama.

CHINA AND US TIES

  • Veto holders on five-member UN Security Council
  • China is the biggest foreign investor in US treasury bonds, owning about $770bn (£457bn)
  • China is the world’s biggest greenhouse gas producer at 20.7% of global emissions, followed by the US with 15.5%
  • US imports from China dwarf its exports, stoking trade tensions

China’s rising nationalism

The US-China power balance

Chinese views on Obama’s visit

Obama’s message censored

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Beijing objects to US tariffs on Chinese imports including steel and tyres.

Washington is concerned by the huge bilateral trade imbalance, and accuses China of keeping its currency weak to make its exports more attractive.

Speaking after their meeting, Mr Hu called on the US to " reject protectionism", while Mr Obama urged Beijing to relax controls on the yuan.

Both sides acknowledge the need to reduce economic tensions, reports the BBC’s Chris Hogg from Beijing, but so far Mr Obama’s trip has not produced any breakthroughs.

As well as the economy, the issue of North Korea could be discussed in the meeting with the Chinese premier.

Both the US and China have been urging the reclusive nation to return to nuclear talks, and last month Mr Wen visited Pyongyang to meet leader Kim Jong-il.

After meeting Mr Wen the US president will visit a section of China’s Great Wall.

He then goes to Seoul, where he will hold talks on Thursday with President Lee Myung-bak.

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