James Steinberg released his concept for future China-US relations last July – "strategic reassurance," which has been referenced on many occasions by American officials. Steinberg has stated that concerning the growing strength and influence of China, the United States is "eager to continue working with China to address a variety of global and regional issues, including those where the two countries disagree." During Gorge W. Bush's governance, a framework was created where China would become a "responsible stakeholder in world affairs." This mode was proposed by Steinberg's predecessor Robert Zoellick. He urged that China, as a member and "stakeholder" of the international community, holds a responsibility to help maintain the system.

After President Obama was sworn into office, he was immediately overwhelmed with domestic issues like economic recovery, building a health reform plan and lowering unemployment. This has left his foreign policy to be put on the back burner. He must still cope with a range of global issues that include the global financial crisis, climate change, nuclear non-proliferation and remaining entrenched in two wars. It is clear that on all these fronts the US needs the full support and cooperation of China, the world's largest developing country and its key economic partner.

"'Strategic reassurance' is a method of highlighting and emphasizing common interests," Steinberg said in describing the concept, "and addressing the roots of any distrust present across all political, military or economic fronts." Steinberg and Bader's trip to Beijing was not only geared toward patching US-China relations, but also to seek China's cooperation on Iranian and North Korean nuclear issues. The Chinese Foreign Minister called talks with them "in-depth and candid," and hoped to see the resumption of Six-Party Talks and joint achievement of the preset goals.

Mr. Yang admitted frankly that there are some difficulties in settling the Iranian nuclear issue, but insisted "pressure and sanctions cannot resolve the issues in any ultimate sense." He hopes that all parties concerned adhere to the diplomatic negotiations.

Trade, Trade, Trade

Among the current China-U.S. frictions, recent trade disputes have had the biggest direct affect on the lives of people of both countries. Last September, the US government announced that over the next three years it would impose punitive tariffs on tires imported from China. The rate would be set at 35 percent in the first year, 30 percent in the second and 25 percent in the third.

According to data released by the China Rubber Industry Association, 40 percent of all tires made in China are exported, among which a third goes to the U.S. Tariffs as high as 35 percent would definitely stifle China's tire exports to the U.S. Preliminary estimates have shown that about 100,000 Chinese workers would face disemployment, and the export losses would reach nearly US $1 billion.