Thursday, January 20, 2011

Chinese Leader Heads to Congress to Face Toughest Critics

A day after being honored with toasts at a White House state dinner, Chinese President Hu Jintao heads Thursday to the U.S. Capitol building, where he will come face to face with some of his fiercest American critics,

The two highest officials in the Congress -- Senate Majority Leader Harry Reid and House Speaker John Boehner -- both turned down invitations to Wednesday night's black-tie dinner, attended by nationally famous actors, politicians, and musicians.

Both said they were simply waiting to meet Mr. Hu on Thursday. But anger is running high in the Congress over China's currency policies -- which many believe are taking away American jobs -- and its human rights record. Reid called Mr. Hu a "dictator" during a television interview this week.

Mr. Hu made a rare concession on the rights issue Wednesday during a joint news conference with Mr. Obama. After the U.S. president called publicly for China to uphold "universal rights," Mr. Hu conceded that "a lot" must still be done to improve human rights in his country.

Later Thursday, Mr. Hu will deliver what China has billed as a "major address" to a U.S. business forum before traveling to Chicago, America's third largest city. There, he will highlight cultural contacts between the countries and attend a contract-signing ceremony.

While human rights is an emotional issue for many in Congress, the more likely source of immediate friction is the currency issue, with 84 lawmakers having signed onto a letter telling Mr. Obama their patience "is near an end." Legislation has already been introduced calling for tariffs on Chinese imports if Beijing continues to keep the value of the yuan artificially low.

U.S. leaders believe the yuan would rise by at least 20 percent if allowed to trade freely. That would make Chinese products more expensive on world markets and American products cheaper in China.

Mr. Obama made the same point Wednesday, saying a higher yuan would help address the huge trade imbalance between the two nations.

But he also hailed the value of cooperation between the world's two largest economies, noting that dozens of business deals this week will increase U.S. exports by more than $45 billion and increase China's investments in the U.S. by several billion dollars.

Mr. Obama also said the U.S. supports further dialogue between China and the Dalai Lama. On tensions on the Korean peninsula, the president said he and Mr. Hu agreed that North Korea must avoid further provocations.

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