Analysis: Obama in China: It’s about the money

BEIJING, China — The rise of China and the economic vulnerability of America has been discussed ad nauseam in recent months. But nowhere was it more evident than in Beijing this week, as the presidents of both countries met for the first time in China since Barack Obama was elected.

At the very least, it appears this relationship is fast becoming one of equals. The real weight of China’s new global power and its economic hold over an America weakened by recession are up for debate, but Obama appears to be approaching the Chinese government with a different attitude than U.S. presidents past.

“The United States welcomes China’s efforts in playing a greater role on the world stage — a role in which a growing economy is joined by growing responsibilities,” Obama said in a joint appearance with Chinese President Hu Jintao on Tuesday.

The U.S. and China, he said, are more deeply connected than ever before.

“Given that interconnection, I do not believe that one country’s success must come at the expense of another,” said Obama. “That’s why the United States welcomes China as a strong, prosperous and successful member of the community of nations.”

Standing side-by-side in the Great Hall of the People before hundreds of reporters at a press conference, Obama and Hu — neither looking entirely at ease — unveiled a lengthy joint statement of policy and purpose, indicating wide agreement on issues from climate change to Taiwan. Obama gently chided China about human rights and currency valuation, as Hu reiterated Chinese concerns about potential American trade protectionism. Mostly, they spoke about broad areas of agreement and a new spirit of cooperation on important issues. They then left the room without taking any questions from disappointed reporters.

In years past, high-level meetings between the United States and China were often characterized by lecturing and scolding from the American side. While Obama administration officials say he spoke forcefully to Hu about areas like Tibet and human rights, it’s clear that trade and economics were at the heart of his agenda in China. Human rights groups have chastised Obama for appearing softer on the rights issue than his predecessors, but his advisers say he remains committed to pressing China on problems like religious freedom in Tibet.

But how much can Obama push on issues that China considers meddling, when the U.S. government seems concerned with reassuring China, the largest single holder of U.S. treasury bills, that its investment is safe? Nobody is acknowledging a shift away from human rights as an important item, but financial issues have taken a front seat.

Obama spent three days in China, his first trip here in any capacity. He spoke to university students in Shanghai, where his comments about freedom of expression were censored by state media. In Beijing, he met with top leaders, toured the Forbidden City and saw the Great Wall.

There were more tangible results from his talks than many had expected. For instance, the two countries signed a series of agreements on clean energy development and agreed to push for a deal on carbon emissions ahead of next month’s global summit in Copenhagen.

Yet China did not appear to budge on key issues like the undervaluing of its currency or opening more of its markets to American goods and services. Both sides agree that talks will continue.

Chinese leadership appeared pleased with the latest state of Sino-U.S. affairs. Premier Wen Jiabao, who met Obama to talk about trade before the American president left for Seoul on Wednesday, spoke optimistically.

“We are really on the cusp of moving forward with this relationship,” Wen said.