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"On my part, I remain committed to the process of dialogue. It is my firm belief that dialogue and a willingness to look with honesty and clarity at the reality of Tibet can lead us to a viable solution."

China draws Tibet, Taiwan line in strategic dialogue with US

May 30, 2010

(, May27, 2010) The United States must respect China's
core interests and major concerns, and pay particular attention to
handling sensitive issues such as those regarding Taiwan and Tibet. This
was one of the seven proposals China made at the second round of
China-US Strategic and Economic Dialogues (S&ED) held in Beijing on May
24-25, reported China's official Xinhua news agency May 24, citing Ma
Zhaoxu, spokesman of the Chinese delegation attending the strategic
track of S&ED.

It was the second round of the much-publicized S&ED dialogue which
opened in Beijing on May 24 morning, attended by 50 representatives from
more than 40 departments of the two countries. President Hu's special
representatives, Vice Premier Wang Qishan and State Councilor Dai
Bingguo, co-chaired the economic and strategic tracks of the SE&D with
US President Barack Obama's special representatives, Treasury Secretary
Timothy Geithner and Secretary of State Hillary Clinton, respectively.

The report cited Ma as saying the two countries agreed that they enjoy
increasing common interests, face increasing common challenges and
shoulder more and more common responsibilities in the transformation of
international situation.

On the contentious issue of currency reform, China said it would carry
it out at its own pace while demanding that the US end its curbs on
high-tech exports, reported AP May 25.

It was at the dialogue's opening ceremony that President Hu Jintao
promised changes in exchange rate controls that Washington and others
say keep China's yuan artificially undervalued and distort international
trade. However, he gave no indication when it might happen, the report
noted. The yuan has been frozen against the dollar since late 2008 to
help China's exporters sell as much as possible abroad.

US controls on exports to China are meant to keep "dual use"
technologies with possible weapons applications, such as lasers and
supercomputers, out of the hands of China's military. Washington is
reviewing its controls and says it might make changes.

The AP report said that during his opening ceremony speech President Hu
referred twice to China's "core interests", a phrase coined by Beijing
to emphasize the importance of its claims to sovereignty over Tibet,
self-ruled Taiwan and vast, disputed swathes of the South China Sea.

"We should respect each other's core interests," Hu was quoted as
saying. "To the Chinese people, nothing is more important than
safeguarding national sovereignty and territorial integrity."

Earlier, in a letter to the participants, US President Barack Obama had
said the dialogue was important as it would allow the countries to
"understand one another better", particularly on issues over which they
disagree, such as Taiwan and Tibet.
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