Pendulum swings away from yuan

China and the United States have concluded their latest round of Strategic and Economic Dialogue in Beijing.

Perhaps most notable was the lack of rhetoric over the touchy issue of yuan valuation - especially since it was only a few months ago when the Americans revived their demand for the mainland to strengthen its currency.

Renewed concern over the debt crisis facing European countries was certainly a factor in the talks, hailed by President Hu Jintao and Premier Wen Jiabao as a major success.

But did the lack of rhetoric mean Washington has given up its quest for a stronger yuan? Nobody believes so. But what was evident in the dialogue was a willingness on both sides to let pragmatism reign - at least for the time being.

The dialogue was practical in the sense that instead of haggling over something both China and the United States couldn't possibly reach agreement on overnight - like the yuan valuation - they concentrated on far less-sensitive subjects.

What could be less political than clean energy? Prior to the talks, US Commerce Secretary Gary Locke led a huge delegation of key American players in clean energy to explore business opportunities in China.

This is a move that can't fail. While the United States has the technology in green energy, it's China's national policy to move toward a development mode calling for greater use of more clean energy. Commerce Minister Chen Deming made it clear the mainland is willing to work for closer cooperation in this area.

There is a pressing need for US President Barack Obama to be pragmatic with China this time around. After pushing through bills to reform public health care and Wall Street banks, Obama is under pressure to help US firms win business and create more jobs for American citizens. Letting the unemployment rate hover around 10 percent is simply not an option if he has designs on winning a second presidential term.

China is currently the third-largest market for US exports, and everybody knows there is no market globally that presents greater growth potential for American goods and service. Without Chinese cooperation, Obama will face an even tougher battle against unemployment back home.

Obama has set himself an ambitious target. When he created a new Cabinet- level body to boost export trade two months ago, he vowed to double US exports over the next five years.

Instead of arm-wrestling with Beijing on yuan exchange rates that Hu emphasized China will reform at its own pace, it would be more constructive to concentrate on other achievable goals with domestic bearing.

There are also other more-pressing issues warranting cooperation between the two powers to prevent them from escalating into crisis, including sanctions against Iran over its nuclear program, the sinking of a South Korean warship by North Korea, and the current European financial crisis.

China is aware of its advantageous position. Therefore, Vice Premier Wang Qishan was straightforward in demanding the United States provide a timetable and road map for lifting restrictions on exports of cutting-edge US technology.

英文虎報 Central Station | By Mary Ma