By Jeff Mason
PHNOM PENH, Nov 20 (Reuters) – In his first meeting with a
Chinese leader since his re-election, U.S. President Barack
Obama said on Tuesday Washington and its chief economic rival
must work together to “establish clear rules of the road” for
trade and investment.
His comments on the final leg of a three-day Southeast Asian
trip follow a U.S. election campaign in which China was
repeatedly accused of unfair trade practices and illustrate the
work ahead in a region already simmering with tension over
territorial disputes involving Beijing.
“It is very important that as two of the largest economies
in the world that we work to establish clear rules of the road
internationally for trade and investment,” Obama told Chinese
Premier Wen Jiabao before an East Asia Summit of Asia-Pacific
leaders in the Cambodian capital Phnom Penh.
During the U.S. election campaign, Obama was denounced by
his rival Mitt Romney for being “a near-supplicant to Beijing”
on trade matters, human rights and security issues. Obama
accused Romney of shipping U.S. jobs to China when he was a
businessman.
In Asia, those trade tensions overlap with friction over
Chinese sovereignty claims that surfaced on Monday at a
Southeast Asian leaders’ summit. In July, a foreign ministers
meeting of the Association of Southeast Asian Nations (ASEAN)
failed to agree on a communique for the first time ever because
of the row.
“I’m committed to working with China and I’m committed to
working with Asia,” Obama said. China and the United States had
a “special responsibility” to lead the way on sustained global
growth, he added before the meeting was closed to media.
Wen highlighted “the differences and disagreements between
us” but said these could be resolved through trade and
investment.
Obama’s visit to Cambodia, the first by a U.S. president,
underlines an expansion of U.S. military and economic interests
in Asia under last year’s so-called “pivot” from conflicts in
the Middle East and Afghanistan.
The Philippines, Australia and other parts of the region
have seen a resurgence of U.S. warships, planes and personnel,
since Obama began shifting foreign, economic and security policy
towards Asia late last year, unnerving Beijing.
Japanese Prime Minister Yoshihiko Noda said mounting Asian
security problems raise the importance of the U.S.-Japan
alliance, a veiled reference to tensions over Chinese
sovereignty claims and maritime disputes.
“With the increasing severity of the security environment in
East Asia, the importance of the Japan-U.S. alliance is
increasing,” Noda told Obama.
STRAINED TIES
Beijing claims the South China Sea as its territory based on
historical records, setting it directly against U.S. allies
Vietnam and the Philippines. Brunei, Taiwan and Malaysia also
lay claim to parts, making the row one of the biggest security
threats in the region.
The area is thought to hold vast, untapped reserves of oil
and natural gas that could potentially place China, the
Philippines, Vietnam and other claimant nations alongside the
likes of Saudi Arabia, Russia and Qatar.
Sino-Japanese relations are also under strain after the
Japanese government bought disputed islands known as Senkaku in
Japan and Diaoyu in China from a private Japanese owner in
September, triggering violent protests and calls for boycotts of
Japanese products across China.
China says both disputes involve sea-lanes vital for its
economy and prefers to address conflicts through one-on-one
talks. But the subject is expected to feature later on Tuesday
at the East Asia Summit, which also includes leaders from ASEAN,
India, South Korea, Australia and New Zealand.
ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Vietnam.
“HOW CAN THERE BE A CONSENSUS?”
On Monday, Noda challenged efforts by summit host Cambodia,
a staunch China ally, to limit discussions on the South China
Sea. Cambodia had said Southeast Asian leaders had agreed not to
internationalise the row — a claim that was strongly disputed
by Philippine President Benigno Aquino.
“How can there be a consensus? A consensus means 100
percent,” said Philippine Foreign Minister Albert del Rosario.
“It was translated into a consensus without our consent.”
Aquino raised the possibility of finding an “alternative
route” to discuss the issue with countries outside the 10-member
ASEAN. That would likely involve the United States, one of its
closest allies, which has said it has a national interest in
freedom of navigation through the South China Sea.
ASEAN on Sunday agreed to formally ask China to start talks
on a Code of Conduct (CoC) aimed at easing the risk of naval
flashpoints, according to Surin. But Wen played down the need
for urgent action in talks on Sunday night with Cambodian Prime
Minister Hun Sen.
Late on Monday, Obama and Southeast Asian leaders launched a
trade initiative known as the U.S.-ASEAN Expanded Economic
Engagement, which is aimed at smoothing a path for Asian nations
to link up with the Trans-Pacific Partnership, a pact the United
States is negotiating with 10 Asian countries and the Western
Hemisphere, the White House said.
The Trans-Pacific Partnership excludes China until it
undertakes significant economic reforms.
