Economy, Taiwan on Agenda as Biden Heads to China

Posted August 16th, 2011 at 3:30 am (UTC-5)
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U.S. Vice President Joe Biden leaves Washington Tuesday for China, where he is expected to offer assurances about the U.S. economy and try to build a relationship with the next generation of Chinese leaders.

The vice president is scheduled to spend extended time with his Chinese counterpart, Xi Jinping, who is in line to succeed President Hu Jintao in 2013.

The Chinese, for their part, are likely to argue against a pending U.S. arms sale to Taiwan and urge the United States to stay out of Beijing's territorial disputes in the South China Sea.

During his trip, Biden will also visit Mongolia to promote that country's commitment to democratic reform, and Japan where he will tour areas devastated by the March 11 earthquake.

U.S. officials say Biden will emphasize to Chinese leaders that the United States is moving firmly to tackle its fiscal problems.

China, with more than $1 trillion invested in U.S. Treasury bonds, has been highly critical of the handling of the recent U.S. debt ceiling debate. Biden will respond that the agreement signed into law early this month provides a “very strong” deficit reduction package.

The officials say Biden will also renew U.S. demands that Beijing allow its currency to appreciate, making it easier for U.S. companies to sell their goods in China.

Chinese press reports, meanwhile, say Biden should be pressed on a pending decision whether to sell advanced F-16 fighters to Taiwan, which China considers a breakaway province.

Reports from the United States and Taiwan say Washington will likely offer instead to upgrade Taiwan's existing fleet of F-16s. But China's Communist Party-affiliated Global Times newspaper on Tuesday quotes a military strategist saying even that “cannot be accepted” by China.