Thursday, February 04, 2010

Obama vows 'much tougher' stance on US-China trade

Mr Obama told Democratic Party senators that he would put "constant pressure" on China and other countries to stick to their side of trade agreements.

But he said he did not intend to take a protectionist stance towards China, warning that "to close ourselves off from that market would be a mistake".

Tension between the US and China has increased over arms sales to Taiwan.

Relations have also been strained by reports of Chinese cyber attacks on US-run websites and a planned visit to the US by the Dalai Lama.

Earlier, a Chinese foreign ministry spokesman warned Mr Obama that meeting the Dalai Lama would further erode ties.

"We urge the US to fully grasp the high sensitivity of the Tibetan issues, to prudently and appropriately deal with related matters, and avoid bringing further damage to China-US relations," Ma Zhaoxu said.

Exchange rates

At a meeting with Senate Democrats, Mr Obama was asked whether the US would cut ties with Beijing over ongoing trade disputes.

The president said he would continue to make sure that China and other countries lived up to abide by trade agreements, but warned it would be a mistake for the US to become protectionist.

Source : http://news.bbc.co.uk/2/hi/americas/8497422.stm

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