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U.S. Officials Head to Beijing to Discuss Tensions

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BEIJING—U.S. National Economic Council Director Lawrence Summers and Deputy National Security Adviser Thomas Donilon will travel to Beijing this weekend for high-level talks, as the U.S. and China work to iron out tensions on issues ranging from currency policy to military ties to Iran.

The White House officials, scheduled to arrive Sunday and stay until Wednesday, are to exchange views with top Chinese officials on "U.S.-China relations and other important issues of mutual concern," Chinese Ministry of Foreign Affairs spokeswoman Jiang Yu said at a regular press briefing in Beijing Thursday. She didn't elaborate.

The planned visit by the White House delegation—also expected to include Jeff Bader, the U.S. National Security Council's senior director of Asian affairs—comes as strains between the U.S. and China intensify on a number of issues after a period of improving ties earlier this year.

Mr. Summers' meetings with his Chinese counterparts are likely to include discussion of China's currency policy amid mounting frustration in Washington that Beijing's announcement in June that it would make the exchange rate more flexible has yielded minimal change. The yuan has gained less than 0.3% against the dollar since the change was announced June 19, and many U.S. politicians believe China is continuing to suppress its value to benefit its own exporters.

Earlier this week, Hu Xiaolian, a deputy governor of the People's Bank of China, held out little prospect of more rapid appreciation of the yuan in an interview with The Wall Street Journal, saying that the currency "doesn't have a key role to play in rebalancing bilateral trade between the U.S. and China."

Washington and Beijing have also disagreed over how to handle Iran's nuclear program. China, a permanent member of the United Nations Security Council, agreed in June to a U.S.-led sanctions resolution against Iran in the U.N., but then criticized the Obama administration when Washington later adopted its own unilateral sanctions. U.S. officials, meanwhile, have warned China not to undercut international moves by "backfilling," or working with Tehran in areas vacated by other countries observing of the sanctions.

Separately on Thursday, Catherine Ashton, the European Union's top foreign-affairs official, said she had urged Chinese officials during a visit to Beijing to cooperate with international sanctions against Iran. "My message was meant to be very clear," Ms. Ashton told reporters in the Chinese capital. "That we would expect that we wouldn't see ... backfill, but rather that they would see that these are important sanctions and respect them." Ms. Ashton said there was "no negative response" by Chinese officials to her remarks.

Military ties between the U.S. and China also have deteriorated this year over Chinese frustrations about American arm sales to Taiwan and U.S. naval exercises in waters near China. And the two countries have differed over dealing with North Korea after U.S. ally South Korea accused Pyongyang of sinking one of its naval vessels in March, killing 46 South Korean sailors.

China's government, which hosted North Korean dictator Kim Jong Il for a recent visit, has said Pyongyang wants to return to six-nation talks aimed at addressing North Korea's nuclear program, and has urged the U.S. and other parties to agree. But Washington has said Pyongyang must first end its belligerence and make good on pledges from previous rounds of talks.

U.S. Officials Head to Beijing to Discuss Tensions - WSJ.com
 
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