U.S., China Facing Economic, Diplomatic Flash Points

By: Associated Press Email
By: Associated Press Email

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July 27, 2009

Two days of high-level talks between the United States and China open today in Washington.

The meetings are expected to expose sharp differences on trade and soaring U.S. budget deficits. But the discussion could be more harmonious in the area of foreign policy.

Both sides are emphasizing the importance of the meetings. The Chinese are bringing 150 diplomats, and the administration will start the discussions with remarks by President Barack Obama.

Secretary of State Hillary Rodham Clinton and Treasury Secretary Timothy Geithner will lead the U.S. delegation.

With the global economy mired in recession, the United States and China have enormous stakes in resolving tensions in such areas as America's huge trade deficit with China and the Chinese government's unease over America's soaring budget deficits.

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