Beijing, December 13:

US treasury secretary Henry Paulson arrived on Wednesday for crunch talks in Beijing at the head of the most high-profile US trade delegation to visit China in recent years.

A full one-third of the 15 US cabinet secretaries are to hold two days of talks with Chinese leaders designed to soothe trade tensions between the two nations. The US economic chiefs are under intense pressure to win concessions during the “strategic dialogue,” proposed by Paulson as part of an effort to engage rather than threaten China.

They flew out of the United States just as another set of figures came out adding to the chorus of anger and unease in Washington over China’s increasing power in world trade.

Data published on Tuesday showed that the US trade deficit with China grew 6.1 per cent to a record $24.4 billion in October, representing 41 per cent of the total US gap of $58.9 billion for the month.

The figures also showed China had surpassed Mexico as the United States’ second-largest trading partner behind Canada. Economists predicted the United States’ full-year trade deficit with China could soar to $240 billion, up from the record of 202 billion dollars last year.

The numbers give more ammunition to US charges that China deliberately undervalues its currency, the yuan, to help boost its exports, an issue that Paulson and his entourage have flagged will be a top priority this week.

With the Democrats set to retake control of Congress next month, the US administration is under increasing pressure in Washington to get tough with China on the currency and other trade issues, such as copyright piracy.

Anti-piracy crackdown

Beijing: China on Wednesday announced a new crackdown on pirated goods, a key source of tension with Washington, ahead of talks with US Treasury Secretary Henry Paulson on currency and other irritants in their thriving trade ties.

The announcement came as Washington reported its November trade deficit with China hit a record high for a third straight month, adding to a politically charged atmosphere for the talks.

American officials are trying to downplay expectations of breakthroughs from the talks led by Paulson, Washington’s point man on economic ties with Beijing, and Chinese Premier Wu Yi. They are billed as the start of a wide-ranging “strategic economic dialogue.” — AP