fresh voices from the front lines of change







The US-China Strategic and Economic Dialogue has concluded. It is remarkable for two countries to engage in a dialog such as this, and efforts like this to constructively manage differences can both help keep conflict from arising and help both countries achieve economic success. Bravo!

But China has its interests and we have ours, and very high on both lists of priorities is jobs and economic stabilization here. We need the jobs and manufacturing strength just as much as China does. There was "progress" on China's "indigenous innovation" ("Buy Chinese") policy restricts American companies from entering Chinese markets. China says they will being to apply international standards for government procurement, for example. (Although this was promised before and the deadline was missed.) And a new technology proposal still has a 50% "local content" rule. (When we tried to include a modest "Buy American" clause in our stimulus plan China and American conservatives howled. China, I guess not so much.)

A free currency market would help matters considerably. But that was not one of the achievements of the meetings. China agreed to gradually reform its currency exchange rate, but did not give a schedule for doing so. So they may need some prodding.

In response Scott Paul, Executive Director of the Alliance for American Manufacturing (see my video interview yesterday with Scott) issued the following statement:

"While we know that the Obama Administration has raised the issue of China's undervalued Yuan with Beijing, we are disappointed and frustrated by the lack of progress on this issue. Beijing must understand that there will be consequences unless it revalues its currency to a flexible exchange rate that reflects the market.

"It is imperative for Congress to pass legislation that will ensure a level playing field for America's workers and businesses. We need to end China's currency manipulation sooner rather than later. Nobel prize-winning economist Paul Krugman estimates that China's mercantilism will cost the U.S. 1.4 million jobs unless it is reversed.

"America's workers and businesses can compete on a level playing field, but we do not have one right now."

Finally, here is a list of 26 accomplishments from U.S.-China Strategic and Economic Dialogue 2010 Outcomes of the Strategic Track

At the Strategic Track under the framework of the Second Round of the U.S.-China Strategic and Economic Dialogue (S&ED), the two sides discussed major bilateral, regional and global issues. During the Dialogue, relevant departments from the two sides also held break-out sessions on energy security, climate change, United Nations peacekeeping, counterterrorism and law enforcement, and meetings on other issues. The Dialogue produced 26 specific outcomes. The United States and China:

1. Signed the Memorandum of Further Cooperation on Nuclear Safety for the Westinghouse AP1000 Nuclear Reactor between the Nuclear Regulatory Commission of the United States of America and the National Nuclear Safety Administration of the People's Republic of China.

2. Signed the U.S.-China Shale Gas Resource Task Force Work Plan between the Department of State of the United States of America and the National Energy Administration of the People's Republic of China.

3. Signed the Memorandum of Understanding Between the Department of State of the United States of America and the National Development and Reform Commission of the People’s Republic of China on Implementation of the Framework for EcoPartnerships (to be known as the EcoPartnerships Implementation Plan); and are to set up the Joint Secretariat for the EcoPartnerships program, and start the process of establishing new EcoPartnerships.

4. Signed the Memorandum of Understanding between the Department of Homeland Security, U.S. Customs and Border Protection and the General Administration of Customs of the People's Republic of China Concerning Bilateral Cooperation on Supply Chain Security and Facilitation.

5. Renewed the Memorandum of Understanding for the Collaborative Program on Emerging and Re-emerging Infectious Diseases between the Department of Health and Human Services of the United States of America and the Ministry of Health of the People's Republic of China.

6. Welcome the progress made on implementing the U.S.-China Memorandum of Understanding to Enhance Cooperation on Climate Change, Energy and Environment and the Ten Year Framework on Energy and Environment Cooperation, and are to enhance practical cooperation in areas such as climate change, energy, and environment.

7. Under the Ten Year Framework on Energy and Environment Cooperation, are to continue their efforts to carry out specific cooperation in six priority areas: clean water, clean air, clean and efficient electricity, clean and efficient transportation, nature reserves and wetlands protection, and energy efficiency; announced the publication of all seven related action plans in both English and Chinese; and announced the launch of their respective official websites on the Ten Year Framework ( and

8. Held the sixth meeting of the Ten Year Framework Joint Working Group before the second round of the S&ED, and are to hold the first U.S.-China Energy Efficiency Forum after the second round of the S&ED.

9. Held a working meeting of the Clean Energy Research Center on May 25.

10. Are to hold the Electric Vehicles Forum, the Fifth U.S.-China Energy Policy Dialogue, and the Tenth U.S.-China Oil and Gas Industry Forum in the second half of 2010; and reaffirmed the role of the Oil and Gas Industry Forum in promoting shale gas development in both countries.

11. Are to hold the first ever U.S.-China Renewable Energy Forum, and Advanced Bio-fuels Forum on May 26 and 27, and start work on the U.S.-China Renewable Energy Partnership.

12. Announced U.S. Trade and Development Agency grants to support cooperation between U.S. and Chinese enterprises and institutions on combined heat and power, aviation bio-fuels, and smart grid standards.

13. Reiterated that they are to strengthen AP1000 cooperation; and are willing to make concerted efforts to promote cooperation on the nuclear safety technology of High Temperature Gas-cooled Reactors between the Nuclear Regulatory Commission of the United States of America and the National Nuclear Safety Administration of the People's Republic of China after properly addressing the intellectual property protection issue and following the U.S.-China nuclear technology transfer practice.

14. Issued the U.S.-China Joint Statement on Energy Security Cooperation, which noted the two countries, as the world’s largest producers and consumers of energy, share common interests and responsibilities to ensure energy security and face common challenges. The United States and China pledged to uphold the principles of mutual beneficial cooperation, diversified development, and energy security through coordination, recognize that energy security and clean energy go hand-in-hand, and agree to strengthen cooperation in the areas of stabilizing international energy markets, ensuring diversified energy supply, and a rational and efficient use of energy.

15. Are to enhance cooperation on preventing and combating illegal trafficking of nuclear and other related radioactive materials.

16. Are to hold the third U.S.-China Bilateral Forum on Combating Illegal Logging and Associated Trade within this year.

17. Are to continue working toward a successful construction of a Chinese garden at the National Arboretum in Washington, D.C.

18. Are to continue dialogue on human rights on the basis of equality and mutual respect; commented on the successful conclusion of a bilateral Human Rights Dialogue on May 13 and 14 in Washington, D.C.; and expect to hold the next round of the Human Rights Dialogue next year in China.

19. Are to cooperate to fight corruption, including bribery of public officials, through the U.S.-China Joint Liaison Group's Anticorruption Working Group, the APEC Anticorruption Task Force, and other multilateral fora; are to work together to implement the United Nations Convention Against Corruption; decided to hold the eighth meeting of the Joint Liaison Group for Law Enforcement Cooperation in November in Beijing; and reaffirmed the importance of advancing law enforcement cooperation to fight terrorism and transnational crime.

20. Are to hold the Eighth U.S.-China Counterterrorism Consultation within this year.

21. Are to hold a new round of dialogues on security, arms control, and non-proliferation prior to next year's S&ED.

22. Before the next meeting of the S&ED, pledged to hold a new round of sub-dialogues on the following matters to identify opportunities for cooperation on regional and international challenges: Policy-Planning, Africa, Latin America, East Asia, Middle East, South Asia, and Central Asia.

23. Are to conduct dialogue and cooperation on UN peacekeeping operations including their reform.

24. Announced that the U.S. Coast Guard and the Rescue and Salvage Bureau of the Ministry of Transport of the People's Republic of China will organize maritime search and rescue exchange and training programs in China.

25. Talked broadly about development issues, and agreed to enhance communication and dialogue on these issues.

26. Parties to the United Nations Framework Convention on Climate Change, reaffirmed their support for the Copenhagen Accord; announced that the Environmental Protection Agency of the United States of America and the National Development and Reform Commission of the People's Republic of China reaffirmed their commitment to the November 2009 Memorandum of Cooperation to Build Capacity to Address Climate Change and intend to meet within a month to begin implementation; and agreed to initiate discussions on short-term forcers.

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