Obama must take action to ensure Chinese assests are secure in the United States, says a March 19 editorial in the International Herald Leader, a subsidiary of Xinhua. On March 13, Premier Wen re-iterated China’s request that the U.S. administration honor its promise to ensure Chinese assets are secure in the United States. In response, Obama announced that investors from the world including China should have absolute confidence in their investment in the United States.

The editorial comments that unless Obama takes concrete action to reassure China, his promise is nothing but lip service. Specifically, China should leverage its position as the largest debtor and negotiate a much higher return with the U.S. Treasury for U.S. government bonds. China should tie the appreciation of the RMB with the purchase of U.S. government bonds to resist further pressure from the U.S. on RMB appreciation.

Source: Xinhua, March 19, 2009
http://news.xinhuanet.com/herald/2009-03/19/content_11034722.htm

Qian Lihua, Director of the Foreign Affairs office of the Chinese Defense Ministry, stated that the March release of the 2009 China Military Power Report by the U.S. Department of Defense will cause new damage to bilateral military relations. His remarks were made after a meeting between himself and David Sedney, U.S. Deputy Assistant Secretary of Defense. The Xinhua report says that the past 30 years of exchanges have lacked a fundamental principle both countries agree to. This is the result of “a strong U.S. and a weak China.” China has invited the U.S. to observe several field exercises in the past few years, while the U.S. rarely does the same.

Source: Xinhua, March 2, 2009
http://news.xinhuanet.com/herald/2009-03/02/content_10926360.htm

A State delegation of Tibetan members of the National People’s Congress met with U.S. Congressmen, reported the Chinese Central Government’s website on March 18, 2009. The delegation met with Congressmen Rick Larsen, Chairman of the U.S.-China Working Group, and John Conyers, Chairman of Judiciary Committee of the House of Representatives. The delegation also visited the Brookings Institution in Washington DC.

Source: Central Government of China, March 18, 2009
http://www.gov.cn/jrzg/2009-03/18/content_1262072.htm

China’s Anti-monopoly Bureau of Ministry of Commerce denied the U.S. company’s bid to purchase Huiyuan Juice, according to a release by the Ministry’s press office on March 18, 2009, on grounds that the proposed acquisition may restrict competition and harm local producers. On September 18, 2008 Coca-Cola’s submitted application to China’s Anti-monopoly Bureau for clearance to purchase Huiyuan Juice, China’s largest juice producer. Review of the application started November 19, 2008.

Source: Ministry of Commerce of China, March 18, 2009 http://www.mofcom.gov.cn/aarticle/ae/ai/200903/20090306108388.html