Loss of face for Bush in China

PRESIDENT George W. Bush headed back to the US via Mongolia yesterday with little to celebrate after a week-long Asia trip that highlighted tensions with China. His four-hour layover in the Mongolian capital of Ulan Bator – the first visit to the country by a sitting US president – followed talks in Beijing that failed to resolve differences between Washington and the world's most populous nation. Mr Bush prodded Chinese President Hu Jintao to give US companies better access to China's markets, but got no firm commitments for action. He also failed to make any headway on human rights and religious freedom.

A lighter moment on the trip came when the US leader sought to leave a news conference in Beijing but was thwarted by locked doors. He appeared to be making a hasty exit after being irked by a reporter who asked if the President was "off his game" in an earlier appearance with Mr Hu in the Great Hall of the People on Tiananmen Square.

Text of that portion of the press conference:

Q Respectfully, sir -- and you know we're always respectful -- (laughter) --

THE PRESIDENT: Most of the time.

Q -- in your statement this morning with President Hu, you seemed a little off your game. You seemed to hurry through your statement and there was a lack of enthusiasm --

THE PRESIDENT: When? Here, right now?

Q No, this morning, with President Hu. Was something bothering you? Were you tired?

THE PRESIDENT: Have you ever heard of jet lag?

Q Yes, sir.

THE PRESIDENT: Well, good. That answers your question.

Q There was nothing he said, I mean in the meeting?

THE PRESIDENT: No, not at all. Listen, the relationship with China is a good, vibrant, strong relationship. And we have frank discussions, and that's what you want at my level of government. You want to be able to sit down with somebody, and say, look, here are my concerns.



In other words, my point to you is, is that we've got a very vibrant relationship. I don't know what I sounded like during my discussion. As you know, I don't spend a lot of time analyzing myself, and obviously, you do.

In the President's 132 word statement with President Hu, Bush thanked Hu for the weather, the hospitality and a "very frank and candid discussion." Translation: Bush got nothin'. It's hard to ask for concessions from your owners.

While Japan still holds the preponderance of US debt held by foreign nations, China with $200 billion at the end of 2004, is rapidly catching up. And since that debt is held in dollars, the devaluation of the dollar, which is a result of our continuing trade and budget deficits, devalues the bonds held by foreign nations. Right now, this is a particularly thorny issue for China. It pegs its currency to the US Dollar. This hard peg undervalues the Yuan and results in a defacto subsidy to Chinese manufacturers, fueling the trade deficit. There is mounting political pressure in the US to push China to desist in pegging its currency. Yet to do so, would cause the value its US bonds to fall vis a vis their own currency.

Bottom line, so long as we continue the Bush economic policies of high debt and trade deficits, we will be in a weaker and weaker position to ask anything of China.


Loss of face for Bush in China
Ron Hutcheson in Beijing
22nov05

PRESIDENT George W. Bush headed back to the US via Mongolia yesterday with little to celebrate after a week-long Asia trip that highlighted tensions with China.

His four-hour layover in the Mongolian capital of Ulan Bator – the first visit to the country by a sitting US president – followed talks in Beijing that failed to resolve differences between Washington and the world's most populous nation.

Mr Bush prodded Chinese President Hu Jintao to give US companies better access to China's markets, but got no firm commitments for action. He also failed to make any headway on human rights and religious freedom.

"Obviously, this is a long conversation and a long haul," US Secretary of State Condoleezza Rice said. "It is not a system that is going to change overnight."

Despite their differences, the two presidents stressed their willingness to work together.

Mr Bush said his ability to speak frankly with Mr Hu showed the strength of the US-China relationship.

"China is a big, growing, strong country. And it's very important for me to maintain a good working relationship with the leadership here. And we've got that," he said. But Mr Hu showed little interest in Mr Bush's call for more individual freedom, including religious freedom.

China's state-run media ignored Mr Bush's Sunday morning visit to a Beijing church and Mr Hu told reporters that human rights should be based on "national conditions" and China's "historical and cultural heritage".

A lighter moment on the trip came when the US leader sought to leave a news conference in Beijing but was thwarted by locked doors. He appeared to be making a hasty exit after being irked by a reporter who asked if the President was "off his game" in an earlier appearance with Mr Hu in the Great Hall of the People on Tiananmen Square.

"I was trying to escape. Obviously, it didn't work," Mr Bush quipped, facing reporters again until an aide rescued him by pointing him toward the correct door.

In Ulan Bator, Mr Bush thanked Mongolia for sending troops to Iraq during his visit to the land that produced Genghis Khan. In his speech, Mr Bush proclaimed solidarity with Mongolia, which is sandwiched between military giants Russia and China.

Reuters
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