- The Washington Times - Monday, March 15, 2010

BEIJING | China sought Sunday to deflate rising pressure from the U.S. and other powers over Chinese economic policies and growing assertiveness in world affairs, with its prime minister promising cooperation to bolster the global recovery.

Premier Wen Jiabao took on critics in the West who say Chinese policies lift China while keeping global growth anemic. He defended China’s currency against charges that it is undervalued to boost Chinese exports. He promised that Beijing would import more and urged countries to resist protectionism, saying one country should not seek to disadvantage others during the fragile economic recovery.

“We are opposed to the position of engaging in mutual finger-pointing or taking strong measures to force other countries to adjust exchange rates,” Mr. Wen said in a more than two-hour press conference.

Mr. Wen also criticized Washington for souring relations with the recent White House reception for the Dalai Lama, the exiled leader of Chinese-controlled Tibet, and for approving arms sales to Taiwan, which China claims as its own. “The responsibility does not lie with the Chinese side, but the United States,” he said.

His arguments, while breaking little new ground, were offered in Mr. Wen’s characteristically mild, carefully rational manner. No. 3 in the Communist Party hierarchy and chiefly in charge of the economy, Mr. Wen is also the generally stiff leadership’s most popular figure; grandfatherly and solicitous, he is known as the “people’s premier.”

His press conference is the only one Mr. Wen holds all year and is thus often used by the government to send a message to the public and world. Questions from the foreign and domestic media were prescreened.

This year, Beijing is on the defensive in Western capitals. Beijing’s seeming intransigence at climate change talks in Copenhagen riled some. Other governments are grappling with high rates of unemployment and swelling deficits to fend off recession, even as the Chinese economy bounced back to 10.7 percent growth last year. The Chinese currency, known as the yuan or the renminbi, has become a focal point for criticism in Washington, Europe and other countries.

President Obama in a speech on Thursday urged China to move “to a more market-oriented exchange rate” to help rebalance world growth. More ominously, the Treasury Department must report to Congress in April whether China qualifies as a “currency manipulator” — a label that could precede a complaint to the World Trade Organization and possible sanctions on Chinese goods.

Turning the tables on the U.S., Mr. Wen renewed appeals for assurances from Washington about the safety of China’s $800 billion in foreign exchange reserves invested in U.S. Treasury securities. Mr. Wen said the value of the U.S. dollar was a “big concern” and asked Washington to take unspecified steps to reassure investors.

Mr. Wen spoke after the closing of the annual session of the party-dominated national legislature, which earlier Sunday approved a blueprint to keep government spending high, though at half the rate of last year, to buffer any economic turbulence. Sizable increases were given to education, pensions and low-cost housing — part of a years-long effort by Mr. Wen and President Hu Jintao to more fairly spread the benefits of growth among rural and working-class Chinese.

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