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China, US to wrap up key talks on economy, N.Korea

by Staff Writers
Beijing (AFP) May 25, 2010
The United States and China were to wrap up key talks Tuesday aimed at smoothing out differences on currency and trade issues, as Washington hopes to persuade Beijing to get tough on North Korea.

US Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner and other key ministers were to meet senior Chinese officials for the second and final day of the annual Strategic and Economic Dialogue.

Inter-Korean tensions as well as sensitive issues that have recently dogged Sino-US ties such as trade spats, the yuan and Internet freedom were on the agenda of the high-level talks, attended by a 200-strong US delegation.

Relations between Washington and Beijing have been strained over economic issues such as the value of the Chinese currency, but also over US arms sales to Taiwan and US President Barack Obama's February meeting with the Dalai Lama.

Clinton is expected to press Beijing to back a UN move to slap further sanctions on North Korea, after a panel of experts concluded that the reclusive regime was behind the March sinking of a South Korean warship.

The US military said Monday it wuld carry out anti-submarine and other naval exercises with South Korea in the "near future".

Meanwhile South Korea has cut off trade with the North and pledged to take the matter before the UN Security Council, where China -- Pyongyang's sole major ally -- is one of five veto-wielding members. Beijing on Monday again urged restraint.

Clinton demanded that North Korea "stop its provocative behaviour" and called on China to cooperate with the United States to deal with the situation.

"We must work together to address this challenge and advance our shared objective of peace and stability on the Korean peninsula," she said.

The standoff over Iran's nuclear programme, climate change and energy cooperation are also on the agenda of the talks, which are to conclude with a joint press conference, followed by a separate US press briefing.

Clinton, who started a week-long Asia tour on Friday in Japan, will fly to South Korea on Wednesday on a visit expected to focus on the sinking of the naval corvette Cheonan, which left 46 South Korean sailors dead.



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