China and the US yesterday agreed to boost military ties and counter-terrorism cooperation during high-level annual talks in Beijing, but there was little immediate sign of progress on thorny cybersecurity or maritime issues.
The two-day Strategic and Economic Dialogue talks, led by US Secretary of State John Kerry, US Secretary of the Treasury Jack Lew, Chinese Vice Premier Wang Yang (汪洋) and Chinese State Councilor Yang Jiechi (楊潔篪), were never expected to achieve great breakthroughs.
After discussions on topics that ranged from the value of China’s currency to North Korea, Yang said the two sides agreed to strengthen cooperation in counterterrorism, law enforcement and military-to-military relations, but gave few details.
Photo: Reuters
On two of the most sensitive issues — maritime disputes and cyberspying — Yang largely restated Beijing’s position on both.
“The Chinese side will continue to steadfastly protect its territorial and maritime rights” in the South and East China seas, Yang told reporters as the talks wrapped up.
“China urged the US side to adopt an objective and impartial stance and abide by its promise to not take sides and play a constructive role in safeguarding regional peace and stability,” he said.
Washington insists it has not taken sides, but has criticized China’s behavior in the South China Sea, where Taiwan, the Philippines, Vietnam, Malaysia and Brunei have overlapping territorial claims with China.
On Internet security, Kerry told reporters that discussions were frank, and both sides agreed it was important to keep talking.
It was unclear if any progress was made in resuming the activities of a cyberworking group that Beijing suspended in May after the US charged five Chinese military officers with hacking.
“The loss of intellectual property through cyber has a chilling effect on innovation and investment. Incidents of cybertheft have harmed our businesses and threatened our nation’s competitiveness,” Kerry said.
Yang said China wanted cooperation on cyberissues on the basis of mutual respect and trust.
“China believes cyberspace should not become a tool to harm other countries’ interests. China hopes the US side can create the conditions to carry out US-China dialogue and cooperation on the Internet,” he said.
Meanwhile, officials also agreed that China will reduce its intervention in the currency market when conditions are ripe, reaching an understanding on a prickly issue that has hurt ties between the world’s two biggest economies for years.
People’s Bank of China Governor Zhou Xiaochuan (周小川) said that China will “significantly” reduce its yuan intervention when some prerequisites are met. However, he did not give further details.
Analysts said Zhou’s unusual candor about China’s currency intervention, which had been mentioned on Wednesday by the Chinese finance minister, suggested that Beijing may be ready to let the yuan rise again once there are signs of stabilization in its economy.
Lew told reporters at the end of talks that China was committed to reducing its interference with the yuan, “as conditions permit.”
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