http://www.atimes.com/atimes/China_Business/HD21Cb06.html
Hugs for Hu in 'the other Washington'

SEATTLE - Chinese President Hu Jintao, on the second day of an official visit to the United States, toured Boeing's plant in Everett, Washington, where he endorsed China-US trade ties before an ecstatic crowd of Boeing employees. While meeting with business and government dignitaries in Washington state, Hu stressed the importance of business ties in stabilizing China-US relations and emphasized the need for reciprocal and win-win relationship between the two powers.

Meanwhile, in Beijing, an official with the State Copyright Bureau pledged China's intention to give foreign companies confidence in the country's ability to protect their intellectual property rights (IPR). The statements followed a meeting between Hu and Microsoft chairman Bill Gates in which Hu noted recent actions to promote IPR protection including the installation of legal Windows software on computers sold in China.

As Hu headed for the "other Washington" in the District of Columbia late on Wednesday, some analysts warned that his welcome there might not be so warm, with a variety of contentious issues on the table.

For example, Los Angeles Times writer Sam Howe Verhovek noted: "Presidents Hu and [George W] Bush are expected to lock horns over a variety of nettlesome issues ... including the record [US]$202 billion US trade deficit with China, Beijing's currency policies and the growing demand for petroleum in the world's most populous nation."

And University of Washington professor and China expert David Bachman said that although Hu's focus on the mutual benefits of trade played well in Washington state, there was also a "not-too-subtle subtext that you better work on these crazy people in DC to make sure [the trade] continues".

Hu's visit to Boeing: 'China rocks'
Hu toured Boeing's enormous Everett, Washington, final-assembly plant on Wednesday, riding in a golf cart and visiting a mock-up of the next-generation Boeing 787 Dreamliner, 60 of which China has already arranged to purchase. Boeing forecasts that China will buy up to 2,600 planes in the next 20 years, valued at $213 billion, and the US firm has historically commanded a majority share in China's civilian-airliner market.

At a presentation before plant employees, Hu said, "I hope that [China-US] economic trade and relations will prosper further and fly higher, just like a Boeing plane ... Boeing is a household name in China. When Chinese people fly, it is mostly in a Boeing plane. I'm pleased to say that I came to the United States on a Boeing plane." The president had arrived at the firm's private airfield in Everett on an Air China Boeing 747.

Hu was the third Chinese leader to visit the plant, following Jiang Zemin and Deng Xiaoping in previous years. At the end of Hu's presentation, the president hugged a startled Boeing employee, 777 program manager Paul Dernier, who had presented him with a Boeing baseball cap.

"A lot of people I talked to said they've never seen him hug anyone," Dernier said later, adding: "I was totally caught off guard. It was an international embrace ... My first presidential hug - I feel pretty special."

The incident typified the warm atmosphere prevailing at the Boeing visit, summed up by Boeing Commercial Airplanes chief executive Alan Mulally, who said the visit exceeded his expectations and noted: "For the president of China [on his] first visit to the United States ... to have the first place he stops be Paine Field, and his thank-you to Boeing workers - it makes my eyes water." Speaking at the same event where Hu delivered his speech, Mulally had commented, "China rocks."

Hu calls trade ties 'pillar' at luncheon
At a luncheon on Wednesday hosted by the state of Washington, the Seattle business community and local organizations, Hu said business cooperation has proved to be a pillar for the growth of Sino-US relations, vowing to promote bilateral business ties.

"Strong business ties meet the fundamental interests of our two countries and peoples and will continue to play an important role in boosting and stabilizing our relations," Hu said.

He also expressed his hope to work together with the US side to enhance mutual trust, deepen cooperation and promote the growth of the constructive and cooperative China-US relations in all fields.

In 2005, trade volume between the two countries jumped to $211.6 billion, an increase of more than 80 times over that in 1979 when China and the United States established diplomatic relations. "The fast-growing bilateral business ties have delivered great benefits to our peoples," Hu said in the speech with the theme of "Deepen Mutually Beneficial Cooperation to Promote Common Development".

He said that by doing business with China, US companies have made good profits, enhanced their global competitiveness and strengthened their positions in the US market. At the same time, Hu also pointed out that it is "hardly avoidable" that some problems have occurred, given the rapid growth, sheer size and wide scope of business ties between the two sides.

"We should properly address these problems through consultation and dialogue on an equal footing as we work to expand our business ties," Hu said. He stressed that mutually beneficial cooperation and common development remain "the defining feature of our business relations".

Hu calls for win-win results at Gates' mansion
At a Tuesday night dinner at the mansion of Microsoft boss Bill Gates, Hu called for joint efforts to achieve reciprocal and win-win results in Sino-US ties.

As long as China and the United States view and handle bilateral relations from a strategic height and long-term perspective, seize their common strategic interests, and enhance exchanges and cooperation with mutual respect and on an equal footing, they will realize the reciprocal and win-win results, Hu said.

At the dinner, officially hosted by Washington state Governor Christine Gregoire despite its location, Hu said China and the US share common aspirations for promoting their economic and social development and common strategic interests in a wide range of areas - from safeguarding world peace to promoting global economic growth.

Hu said that during his current visit to the US he would exchange views with President Bush and other US leaders on bilateral relations and major international and regional issues so as to advance the bilateral constructive and cooperative relationship jointly.

At a meeting in Seattle on Tuesday with Gregoire, Hu noted that Washington state enjoys very close and fruitful exchanges and cooperation with China in economy, trade, education, health, science and technology. He said the two sides will have broader prospects for mutually beneficial cooperation as China's reform and opening-up deepens. He encouraged local business people to strengthen exchanges with the Chinese side.

Gregoire said she hoped bilateral cooperation would continue to grow in such fields as economy, trade, health, education, science and technology.

Also on Tuesday, China's State Development and Reform Commission and Microsoft Corporation signed a memorandum of understanding in Seattle on further strengthening bilateral cooperation in software. Both sides agreed that bilateral cooperation in the coming five years will cover technology development, hardware purchase, software outsourcing, technical cooperation, personnel training and expansion of investment in China's software businesses.

The Chinese president paid a visit on Tuesday afternoon to Redmond-based Microsoft, where he told Gates that he was satisfied with bilateral cooperation and hoped to expand such cooperation.

The Microsoft chairman said the Chinese government stresses innovation and his company takes innovation as a key, which forms a firmer foundation for bilateral cooperation. He also expressed his appreciation for the Chinese government's efforts and achievements in the protection of intellectual-property rights (IPR).

Beijing official clarifies IPR stance
On Wednesday an official in Beijing stressed China's desire to give overseas companies confidence in its efforts to protect IPR.

"The talks between President Hu Jintao and Bill Gates are not about saying that China in the future will not have any problems with pirated software," Wang Ziqiang, spokesman for the State Copyright Bureau, told a press conference. "These talks are an epitome to show the stance of the Chinese government in protecting IPR and cracking down on IPR violations."

Hu's meeting with Gates in Seattle on Tuesday was partly intended to give overseas investors and firms confidence in China's determination to crack down on intellectual-property violations and to believe that piracy can be confined to a limited scale with the consistent efforts of the Chinese government, Wang acknowledged.

China has adopted regulations recently that computers sold in China, whether imported or made in China, must be pre-installed with a legal operating system, as an efficient, substantial effort to beef up the protection of intellectual-property rights.

Wang also disputed statements made by US Commerce Secretary Carlos Gutierrez that up to 70% of software on Chinese government computers was pirated. "Gutierrez' statement is not backed by any facts and is therefore unfounded," he said.

Wang said the process of legitimate software use on government computers involves reporting to the government procurement department at a higher level for the amount of legitimate software after a thorough checkup for pirated software, after which the government conducts the procurement and pays the associated expenses. However, he did not cite any data showing the extent to which Chinese government agencies follow this procedure.

The Chinese central government is expected to allocate up to 150 million yuan ($18.7 million) for legitimate-software purchases for government computers, Wang said. China is also working hard to promote legitimate software use in enterprises, especially in the state-owned firms where the government has more control, said Zhang Qin, vice commissioner of the State Intellectual Property Office.

(Asia Pulse/XIC)