U.S., China Reach 'Milestone' Agreement from the CFR

U.S., China Reach 'Milestone' Agreement

As two day bilateral talks concluded in Washington, Chinese and U.S. negotiators struck a "milestone" accord (WashPost) on economic and military affairs despite several nagging issues like currency and human rights. The series of deals included an arrangement where top military commanders would meet regularly in what has been called the "Strategic Security Dialogue." The talks also secured compacts to expand U.S. access to Chinese markets (FT) and Chinese access to U.S. technology. U.S. Treasury Secretary Timothy Geithner praised the "tangible signs of progress," including a pledge from Beijing to protect intellectual property and alter regulations so that government contracts are not linked to improvements in its domestic technology base.

Progress in negotiations came as Chinese diplomats reassured Washington that Beijing is committed to liberalizing its currency (WSJ). Analysts suggest China is more keen to use monetary policy to combat inflation--an issue some view as the country's biggest economic challenge. However, leaders from the world's two largest economies continued to battle over the issue of human rights (BBC), particularly given China's recent crackdown on pro-democracy activists. Secretary of State Hillary Clinton described China's record on human rights as "deplorable," while China contends that it has made "historical progress" over the past several decades.

Analysis:

CFR's Elizabeth Economy writes that China and the United States face difficult diplomatic issues but also a chance to jumpstart engagement on military and cybersecurity.

In this interview with the Atlantic, Clinton speaks on Beijing's human rights record and said it is "trying to stop history" by opposing the advance of democracy.

In the South China Morning Post, CFR's Jerome Cohen asks, "If a famous figure like Ai Weiwei can be so blatantly abused in the glare of publicity, what protections do ordinary Chinese citizens receive from their police?"

In the Washington Post, Harold Meyerson discusses China's shrinking workforce and the future of U.S. manufacturing.

Multimedia

In this CFR video, Adam Segal, author of Advantage: How American Innovation Can Overcome the Asian Challenge, discusses the policy changes needed to achieve the Chinese ambition to move from a model of "made in China" to "innovated in China."