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Tension over trade as US-Sino relations turn chilly

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Tension over trade as US-Sino relations turn chilly


A cold wind is blowing over relations between the White House and China.

Beijing is furious over a US-proposed six millon dollar arms package to Taiwan, while the Obama administration is vowing to get tough over trade.

In a speech to Democratic Senators, the US President said China and other countries had to be pushed into enforcing trade rules and sticking to agreements.

“One of the challenges that we have got to address internationally is currency rates and how they match up – to make sure that our goods are not artificially inflated in price and their goods are not artificially deflated in price. That puts us at a huge disadvantage,” said Barack Obama.

But Sino-US tensions are also on the rise elsewhere. Obama’s plans to meet exiled Tibetan spiritual leader the Dalai Lama have not been well received. And then there is the fall-out in cyber space over Chinese censorship of Google and its alleged attacks on US-run websites.

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