Since the beginning of this year, the United States has adopted a series of protectionist measures against China—moves that Zhou believes have taken a heavy toll on Chinese exporters.

At the press conference, President Hu Jintao told reporters that he stressed to Obama that "under the current situation, both China and the United States should oppose and resist protectionism in all forms in an even stronger stand."

Moreover, according to the statement, the two sides are committed to jointly combating all forms of protectionism and have agreed to work proactively to resolve bilateral trade and investment disputes "in a constructive, cooperative and mutually beneficial manner."

In addition, the United States has yet to recognize China as a market economy, despite its vows to "work toward China's market economy status in an expeditious manner" months ago, Zhou said.

The United States made the pledge in the joint fact sheet on the economic track of the first China-U.S. Strategic and Economic Dialogue held in Washington, D.C. in late July.

"It is unwise for the United States to refuse recognizing China's market economy status," Zhou said. "That's because it will be less able to use it as a bargaining chip as time progresses."

Upon entering the World Trade Organization (WTO) in 2001, China agreed with other WTO members that it would be regarded as a "transition economy" for 15 years before automatically gaining a market economy status in 2016.

Given China's declining exports in recent months, it is unreasonable to force the yuan to appreciate, Zhou said. Meanwhile, he warned that a depreciation of the dollar, which could lead to commodity price hikes, might hinder the progress of world economic recovery. It may also hurt the U.S. economy as foreign capital withdraws from the U.S. market, he said.

Unlike Zhou, Jin did not expect Obama to address these specific issues during his trip to China at all. Such problems should be discussed at a lower level, he said. In his eyes, Obama's visit was "unexpectedly successful."

The CICIR's Yang, however, commended the two countries' consensus on facilitating the recovery of the world economy. They promised to work together to promote sustainable and balanced global economic growth, he said. They also agreed that the Group of 20 should serve as a major forum for future international economic cooperation.

Lastly, they have come to realize the "importance of open trade and investment to their domestic economies and to the global economy" at least on paper, noted Yang.

Hot-Button Topics

China's concerns                                America's concerns

Taiwan, Tibet                                          North Korea

Trade protectionism                               Iran

U.S. restrictions on hi-tech exports       The renminbi's exchange rate

Market economy status                          Climate change

Safety of Chinese assets in the U. S.

International Commitments

The two sides stressed that they share broad common interests in the Asia-Pacific region and support the development and improvement of an open and inclusive regional cooperation framework that is beneficial to all.

The two sides reaffirmed the importance of continuing the six-party talks process and implementing the September 19, 2005 Joint Statement, including denuclearization of the Korean Peninsula, normalization of relations and establishment of a permanent peace regime in Northeast Asia.

The two sides noted with concern the latest developments with regard to the Iranian nuclear issue. The two sides agreed that Iran has the right to peaceful uses of nuclear energy under the NPT (Treaty on the Non-proliferation of Nuclear Weapons) and it should fulfill its due international obligations under that treaty.

The two sides welcomed all efforts conducive to peace, stability and development in South Asia. They support the efforts of Afghanistan and Pakistan to fight terrorism, maintain domestic stability and achieve sustainable economic and social development, and support the improvement and growth of relations between India and Pakistan.

The two sides also discussed the importance of UN peacekeeping operations in promoting international peace and security.

The two sides agreed to enhance dialogue on development issues to explore areas of cooperation and coordination and to ensure that both countries' efforts are conducive to achieving sustainable outcomes.

Regarding the upcoming Copenhagen conference, both sides agree on the importance of actively furthering the full, effective and sustained implementation of the United Nations Framework Convention on Climate Change in accordance with the Bali Action Plan.

The United States and China, consistent with their national circumstances, resolve to take significant mitigation actions and recognize the important role that their countries play in promoting a sustainable outcome that will strengthen the world's ability to combat climate change.

The two sides agreed that the transition to a green and low-carbon economy is essential and that the clean energy industry will provide vast opportunities for citizens of both countries in the years ahead and welcomed significant steps forward to advance policy dialogue and practical cooperation on climate change, energy and the environment.

(Source: U.S.-China Joint Statement, beijing.usembassy-china.org.cn)