* Chinese President puts upbeat face on ties
* White House advisers conclude "productive" talks
* Talks covered North Korea, Iran, global economy
* Hu aims to visit U.S. early next year
(Adds Chinese comment on military exchanges, paragraphs 12-14)
By Chris Buckley
BEIJING, Sept 8 China and the United States
said on Wednesday that their sometimes rocky relationship is
sounder after talks in Beijing, with both putting an optimistic
face on ties that have been jolted by economic and security
The friendly mood-music between two of the world's biggest
economies came during talks between Chinese President Hu Jintao
and two White House advisers, Deputy National Security Adviser
Tom Donilon and National Economic Council Director Larry
Throughout 2010, Washington and Beijing have gone through
bouts of friction over Internet policy, Tibet, U.S. arms sales
to Taiwan, China's currency and Chinese territorial claims in
the South China Sea. The gaping U.S. trade deficit with China,
worth $226.9 billion in 2009, has fuelled trade disputes.
President Hu is likely to visit the United States early
next year, and he played down rifts in remarks to Donilon and
Summers, who arrived in Beijing on Sunday for meetings with
senior economic officials and diplomats.
"I've heard your discussions have gone well. I'm sure that
this visit will certainly enhance mutual communication and
mutual trust," Hu told them at the start of the talks, while
reporters were briefly allowed in the meeting room.
"Since President Obama assumed office, China-U.S. relations
have on the whole maintained healthy development thanks to the
efforts of both sides," added Hu.
The three days of meetings ending on Wednesday included one
between Summers and Zhou Xiaochuan, the head of China's central
bank, which steers currency policy.
For a factbox on tensions click on: [ID:nTOE61B01A])
For a timeline of relations this year: [ID:nTOE62U056]
For an analysis on diplomacy and territorial issues:
The Obama administration was also looking to smooth ties
with Beijing, Donilon told Hu.
"Our discussions have been productive, detailed,
far-reaching -- covering the full range of security and
economic issues," said Donilon, who was seated next to Hu.
YUAN, SECURITY ISSUES
Among the issues discussed in Beijing were North Korea,
Iran and global economic rebalancing, a spokesman for the U.S.
National Security Council, Mike Hammer, said in a statement
emailed to reporters. He gave no more details.
The Obama administration wants to "expand cooperation in
the many areas where our countries' interests coincide while we
speak frankly and with respect when we disagree", said Hammer.
A senior military official also said he hoped to keep
dialogue with the United States open. The remark was unusually
positive for the People's Liberation Army which was incensed
when the Obama administration approved a massive arms sale to
Taiwan at the start of the year.
China's military responded by suspending exchanges with
U.S. counterparts, and has declined to resume them despite U.S.
overtures, and even as diplomatic relations improved.
Xu Caihou, vice chairman of the Central Military
Commission, told Donilon that China "hopes to keep dialogue and
exchanges with the Unites States so as to improve mutual
understanding and deepen trust", Xinhua reported. The report
did not elaborate.
The areas of disagreement also probably included China's
yuan currency, which Washington complains is held too low
against the dollar, giving Chinese exporters an unfair
China unofficially pegged the yuan CNY=CFXS to the dollar
from mid-2008 to mid-2010, so the currency weakened against
other trade partners as the value of the dollar slid.
(Additional reporting by Ben Blanchard; Editing by Sugita