Hu promotes closer ties on US trip

Chinese President Hu Jintao (L) jokes with Microsoft chairman Bill Gates (R) and CEO Steve Ballmer (C) during a visit to Microsoft headquarters in Redmond, Washington on Tuesday. PHOTO: AFP

Hu dined on Tuesday night with about 100 US political and corporate leaders at the home of Bill Gates, whose Microsoft Corp. has been a major victim of Chinese software piracy. In a meeting earlier with Gates, Hu reiterated China would move against software pirates.

US industry groups estimate 90 percent of DVDs, music CDs and software sold in China are pirated. The intellectual property issue is also expected to be on the agenda at Hu's meeting on Thursday with President George W. Bush.

Attendees at Tuesday's dinner, hosted by Washington state Gov. Chris Gregoire at Gates' $100 million lakeside mansion, included executives from Boeing Co, a leading exporter, which Hu will visit on Wednesday. China recently signed a deal with the company to buy 80 737 jets worth about $4 billion.

In remarks at the dinner, Hu stressed the expanding relationship between China and the United States.

"Today, many cargo ships are very busy crossing the Pacific Ocean, laden with the rich fruit of our strong trade ties and friendship between our two peoples," Hu said.

"I am sure that with the further deepening of China's reform and opening up, we are going to see an even broader prospect for the economic cooperation and trade between China and Washington state and China and the United States as a whole."

Before Hu's visit, China sought to quell US trade complaints by signing contracts worth $16.2 billion, while Vice Premier Wu Yi visited the United States last week. The US trade deficit with China totaled $202 billion last year.

The official spokesman for the Chinese delegation, Liu Jianchao, told reporters the results of the vice premier's US trip were "very positive."

US Deputy Secretary of State Robert Zoellick said Beijing had been "agonisingly slow" in meeting US demands to reform its currency. US officials say the yuan is undervalued, making Chinese exports artificially cheap.

The Chinese spokesman said the currency issue was certain to be discussed in coming days.

Bush said on Tuesday he would bring up Iran's nuclear programme at his White House lunch with Hu. The American president wants China to agree to putting more pressure on Tehran through the UN Security Council, something Beijing is resisting.