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FACTBOX: Host of issues challenge Sino-U.S. relations
(Reuters) - China and the United States celebrate 30 years of diplomatic recognition on Thursday, but a deteriorating economic outlook could challenge the relationship even as a new U.S. president takes office.
Below are some issues for the two countries going forward:
ECONOMY - The two countries are deeply intertwined: the U.S. buys more Chinese exports than any other country, and China is the largest holder of U.S. treasury bonds.
China needs U.S. demand to recover for the sake of its exporters and wants the dollar to maintain its value or its sovereign wealth could suffer.
The U.S. is counting on China's help in restructuring the weakened global financial system and needs Beijing to keep on buying its debt as President-elect Barack Obama plans to ratchet up deficit spending.
JOBS - As Chinese exporters close shop, the ranks of the jobless are growing and creating pressure for China to support its export sector in ways that could trigger tension with trading partners. U.S. lawmakers, also facing rising unemployment, are increasingly hawkish on competition from cheap Chinese imports.
YUAN - Obama has already urged China to continue appreciating the yuan, which the U.S. views as undervalued. But yuan movement has stalled against the dollar since July. The fear is that, despite pledges from Chinese officials to keep the currency steady, Beijing may cave into pressure from hurting exporters and engineer a depreciation that could lead to an explosion of trade tensions.
NATURAL RESOURCES - China is increasingly dependent upon oil and minerals from far-flung sources, including Africa and the traditional U.S. "backyard," Latin America. As its imports rise, so does competition for resources with other developed countries, while growing Chinese interest in defending its mines, wells and shipping could also lead to greater Chinese security deployment.
TAIWAN - Ties between mainland China and Taiwan have warmed since the Kuomintang won presidential elections in March 2008 and returned to power. That could provide some relief for the U.S., which is obliged to help Taiwan defend itself. China has pledged to bring the self-ruled democratic island under its control, by force if necessary.
TIBET - An uprising by Tibetans in March 2008, and Beijing's ensuing crackdown, inflamed passions in China and overseas. China strongly protests whenever world leaders meet exiled Tibetan leader, the Dalai Lama, who was received by outgoing U.S. president George W. Bush at the White House.
HUMAN RIGHTS - The standard of living and daily freedoms have expanded enormously for most Chinese over the past 30 years, but Beijing continues to brook no opposition to Communist Party rule. The U.S. has spoken out against China's detention of civil rights campaigners, including AIDS activist Hu Jia, and urged freedom of religion.
FOOD, DRUG AND PRODUCT SAFETY - American consumer distrust of Chinese exports has risen since the summer of 2007 after a series of discoveries of fake drugs, lead paint in toys and substandard or dangerous ingredients including melamine, a chemical compound, found in dairy products. The U.S. Food and Drug Administration is setting up offices in China to try to head off future problems.
(Reporting by Lucy Hornby; Editing by Nick Macfie)
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