Hu done it

If it was a boxing match, China’s first full state visit to the US since 1997 would be a win on points; and clearly this comes down to Hu Jintao. Okay, there were hiccups, such as his claim that certain questions (on human rights) had been ‘lost in translation’. But Hu also showed that he has a sense of humour, which is more than can be said for three or four members of Congress. Not only did a number of them eschew social events with the Chinese President, they also launched extraordinarily vitriolic verbal attacks from the Congress pulpit. The should realise, however, the veracity of a quip by Kevin Rudd, former Aussie PM. He said Hu is America’s bank manager, because the PRC is the largest holder of US Treasury stock (a short $900 billion at the last count).

For his part, Obama was more polite although he did go ‘yuan’ about the currency. Much was also made of some $45 billion of US export deals, including $19 billion for Boeing. These are real but a number had already been signed and their incidence had little or nothing to do with Hu’s visit. The smart companies, such as GM and GE, just get on with it. China also reminded the US that it more than doubled its investment there last year to $4.9 billion. But this is relatively small and accounts for less than 10% of US FDI, according to Rhodium Group. However, it also said that “in the years ahead these numbers are going to turn heads”. In addition, Commerce Minister Chen said that Hu’s visit will lead to an extra $3.5 billion of Chinese investment in the US.

It is also interesting that China has chosen to air a 60 second promotional advert in Times Square and on TV in the US. It seeks to present a more positive image of the Nation and its people. It will be shown in Europe, Latin America and the Middle East later.

I also liked Charles Freeman’s quip. He is a specialist in China studies at the Washington-based Center for Strategic and International Studies: “jobs equals trade equals China”. Similarly, David Cote, the CEO of Honeywell had this to say: “you always get this question: are they a partner; are they a competitor; are they a customer; are they a supplier? And of course the answer is ‘yes’. You need kind of a nuanced, broad based, thoughtful approach to our relationship with them, and I’m very hopeful that this visit took one more step to having that broader, more nuanced relationship”.

But the final word goes to Coca-Cola’s CEO Muhtar Kent who when offering a toast to Hu at the first State dinner, using the Japanese “kampai” instead of the Chinese “ganbei”. Unlike Queen Victoria, though, Hu was amused.

Headlines

• Obama and Hu focus on their Nation's commercial relationship in Washington
• Minister of Commerce says US trade deficit with China is not caused by the Yuan
• Geithner says stronger Yuan will remove “unfair” advantage in trade
• Members of Congress use Hu’s visit to push for action over China competition
• Hu is “fully confident' about the future of US and China’s relationship
• China doubled US investment to $4.9 billion in 2010
• Promotional advert on the Nation launced by China in Times Square and on TV in the US