18. China and the United States agreed on the critical importance of maintaining peace and stability on the Korean Peninsula as underscored by the Joint Statement of September 19, 2005 and relevant UN Security Council Resolutions. Both sides expressed concern over heightened tensions on the Peninsula triggered by recent developments. The two sides noted their continuing efforts to cooperate closely on matters concerning the Peninsula. China and the United States emphasized the importance of an improvement in North-South relations and agreed that sincere and constructive inter-Korean dialogue is an essential step. Agreeing on the crucial importance of denuclearization of the Peninsula in order to preserve peace and stability in Northeast Asia, China and the United States reiterated the need for concrete and effective steps to achieve the goal of denuclearization and for full implementation of the other commitments made in the September 19, 2005 Joint Statement of the Six-Party Talks. In this context, China and the United States expressed concern regarding the DPRK's claimed uranium enrichment program. Both sides oppose all activities inconsistent with the 2005 Joint Statement and relevant international obligations and commitments. The two sides called for the necessary steps that would allow for early resumption of the Six-Party Talks process to address this and other relevant issues.

19. On the Iranian nuclear issue, China and the United States reiterated their commitment to seeking a comprehensive and long-term solution that would restore international confidence in the exclusively peaceful nature of Iran's nuclear program. Both sides agreed that Iran has the right to peaceful uses of nuclear energy under the Non-Proliferation Treaty and that Iran should fulfill its due international obligations under that treaty. Both sides called for full implementation of all relevant UN Security Council Resolutions. China and the United States welcomed and will actively participate in the P5+1 process with Iran, and stressed the importance of all parties—including Iran—committing to a constructive dialogue process.

20. Regarding Sudan, China and the United States agreed to fully support the North-South peace process, including full and effective implementation of Sudan's Comprehensive Peace Agreement. The two sides stressed the need for all sides to respect the result of a free, fair, and transparent referendum. Both China and the United States expressed concern on the Darfur issue and believed that further, substantive progress should be made in the political process in Darfur to promote the early, comprehensive, and appropriate solution to this issue. Both China and the United States have a continuing interest in the maintenance of peace and stability in the wider region.

21. The two sides agreed to enhance communication and coordination in the Asia-Pacific region in a spirit of mutual respect and cooperation, and to work together with other Asia-Pacific countries, including through multilateral institutions, to promote peace, stability, and prosperity.

Building a Comprehensive and Mutually

Beneficial Economic Partnership

22. President Hu and President Obama recognized the vital importance of working together to build a cooperative economic partnership of mutual respect and mutual benefit to both countries and to the global economy. The two leaders agreed to promote comprehensive economic cooperation, and will further develop a framework of comprehensive economic cooperation, relying on existing mechanisms, by the third round of the SED in May, based on the main elements outlined below:

23. The two sides agreed to strengthen macroeconomic communication and cooperation, in support of strong, sustainable and balanced growth in the United States, China and the global economy.

- The United States will focus on reducing its medium-term federal deficit and ensuring long-term fiscal sustainability, and will maintain vigilance against excess volatility in exchange rates. The Federal Reserve has taken important steps in recent years to increase the clarity of its communications regarding its outlook and longer-run objectives.

- China will intensify efforts to expand domestic demand, to promote private investment in the service sector, and to give greater play to the fundamental role of the market in resource allocation. China will continue to promote renminbi exchange rate reform, enhance renminbi exchange rate flexibility, and promote the transformation of its economic development model.

- Both sides agree to continue to pursue forward-looking monetary policies with due regards to the ramifications of those policies for the international economy.

The two sides affirmed support for efforts by European leaders to reinforce market stability and promote sustainable and long-term growth.

24. The two countries, recognizing the importance of open trade and investment in fostering economic growth, job creation, innovation, and prosperity, affirmed their commitment to taking further steps to liberalize global trade and investment, and to oppose trade and investment protectionism. The two sides also agreed to work proactively to resolve bilateral trade and investment disputes in a constructive, cooperative, and mutually beneficial manner.

25. The two leaders emphasized their strong commitment to directing their negotiators to engage in across-the-board negotiations to promptly bring the WTO Doha Development Round to a successful, ambitious, comprehensive, and balanced conclusion, consistent with the mandate of the Doha Development Round and built on the progress already achieved. The two sides agreed that engagement between our representatives must intensify and expand in order to complete the negotiation.

26. The two leaders agreed on the importance of achieving a more balanced trade relationship, and spoke highly of the progress made on this front, including at the recent 21st Meeting of the Joint Commission on Commerce and Trade in Washington, D.C.

27. China will continue to strengthen its efforts to protect IPR, including by conducting audits to ensure that government agencies at all levels use legitimate software and by publishing the auditing results as required by China's law. China will not link its innovation policies to the provision of government procurement preferences. The United States welcomed China's agreement to submit a robust, second revised offer to the WTO Government Procurement Committee before the Committee's final meeting in 2011, which will include sub-central entities.

28. The two leaders acknowledged the importance of fostering open, fair, and transparent investment environments to their domestic economies and to the global economy and reaffirmed their commitment to the ongoing Bilateral Investment Treaty (BIT) negotiations, recognizing that a successful BIT negotiation would support an open global economy by facilitating and protecting investment, and enhancing transparency and predictability for investors of both countries. China welcomed the United States' commitment to consulting through the JCCT in a cooperative manner to work towards China's market economy status in an expeditious manner. China welcomed discussion between the two sides on the ongoing reform of the U.S. export control system, and its potential implications for U.S. exports to its major trading partners, including China, consistent with U.S. national security interests.

29. The two sides further acknowledged the deep and robust nature of the commercial relationship, including the contracts concluded at this visit, and welcomed the mutual economic benefits resulting from the relationship.

30. The two sides agreed to continue working to make concrete progress on the bilateral economic relationship through the upcoming SED and the JCCT process.

31. China and the United States recognized the potential for their firms to play a positive role in the infrastructure development in each country and agreed to strengthen cooperation in this area.

32. The two countries are committed to deepening bilateral and multilateral cooperation on financial sector investment and regulation, and supporting open environments for investment in financial services and cross-border portfolio investment, consistent with prudential and national security requirements. The United States is committed to ensuring that the government-sponsored enterprises have sufficient capital and the ability to meet their financial obligations.

33. China and the United States agree that currencies in the special drawing rights (SDR) basket should only be those that are heavily used in international trade and financial transactions. In that regard, the United States supports China's efforts over time to promote inclusion of the renminbi in the SDR basket.

34. The two countries pledged to work together to strengthen the global financial system and reform the international financial architecture. The two sides will continue their strong cooperation to strengthen the legitimacy and improve the effectiveness of the International Monetary Fund and Multilateral Development Banks (MDBs). The two sides will jointly promote efforts of the international community to assist developing countries, in particular the least developed countries to achieve the Millennium Development Goals. The two sides will also, in partnership with the MDBs, explore cooperation that supports global poverty reduction and development, and regional integration including in Africa, to contribute to inclusive and sustainable economic growth.

35. The two countries reiterated their support for the G20 Framework for Strong, Sustainable and Balanced Growth and reaffirmed their commitments made in the Seoul Summit Declaration, including using the full range of policies to strengthen the global recovery and to reduce excessive imbalances and maintain current account imbalances at sustainable levels. The two sides support a bigger role for the G20 in international economic and financial affairs, and pledged to strengthen communication and coordination to follow through on the commitments of the G20 summits and push for positive outcomes at the Cannes Summit.

Cooperating on Climate Change, Energy and the Environment

36. The two sides view climate change and energy security as two of the greatest challenges of our time. China and the United States agreed to continue their close consultations on action to address climate change, coordinate to achieve energy security for our peoples and the world, build on existing clean energy cooperation, ensure open markets, promote mutually beneficial investment in climate friendly energy, encourage clean energy, and facilitate advanced clean energy technology development.

37. Both sides applauded the progress made in clean energy and energy security since the launch of the China-U.S. Clean Energy Research Center, Renewable Energy Partnership, China-U.S. Joint Statement on Energy Security Cooperation, and Energy Cooperation Program. Both sides reaffirmed their ongoing exchanges on energy policy and cooperation on oil, natural gas (including shale gas), civilian nuclear energy, wind and solar energy, smart grid, advanced bio-fuels, clean coal, energy efficiency, electric vehicles and clean energy technology standards.

38. The two sides commended the progress made since the launch of the China-U.S. Ten Year Framework on Energy and Environment Cooperation (TYF) in 2008. They agreed to further strengthen practical cooperation under the TYF, carry out action plans in the priority areas of water, air, transportation, electricity, protected areas, wetlands, and energy efficiency, engage in policy dialogues, and implement the EcoPartnerships program. China and the United States were also pleased to announce two new EcoPartnerships. The two sides welcomed local governments, enterprises, and research institutes of the two countries to participate in the TYF, and jointly explore innovative models for China-

U.S. energy and environment cooperation. The two sides welcomed the cooperation projects and activities which will be carried out in 2011 under the TYF.

39. The two sides welcomed the Cancun Agreements and believed that it is important that efforts to address climate change also advance economic and social development. Working together and with other countries, the two sides agreed to actively promote the comprehensive, effective, and sustained implementation of the United Nations Framework Convention on Climate Change, including the implementation of the Cancun agreements and support efforts to achieve positive outcomes at this year's conference in South Africa.

Expanding People-to-People Exchanges

40. China and the United States have long supported deeper and broader people-to-people ties as part of a larger effort to build a cooperative partnership based on mutual respect and mutual benefit. Both sides agreed to take concrete steps to enhance these people-to-people exchanges. Both sides noted with satisfaction the successful 2010 World Expo in Shanghai, and the Chinese side complimented the United States on its U.S.A. Pavilion. The two sides announced the launch of a China-U.S. Governors Forum and decided to further support exchanges and cooperation at local levels in a variety of fields, including support for the expansion of the sister province and city relationships. China and the United States also agreed to take concrete steps to strengthen dialogue and exchanges between their young people, particularly through the 100,000 Strong Initiative. The United States warmly welcomes more Chinese students in American educational institutions, and will continue to facilitate visa issuance for them. The two sides agreed to discuss ways of expanding cultural interaction, including exploring a China-U.S. cultural year event and other activities. The two sides underscored their commitment to further promoting and facilitating increased tourism. China and the United States agreed that all these activities help deepen understanding, trust, and cooperation.

Conclusion

41. President Hu Jintao expressed his thanks to President Obama and the American people for their warm reception and hospitality during his visit. The two Presidents agreed that the visit has furthered China-U.S. relations, and both sides resolved to work together to build a cooperative partnership based on mutual respect and mutual benefit. The two Presidents shared a deep belief that a stronger China-U.S. relationship not only serves the fundamental interests of their respective peoples, but also benefits the entire Asia-Pacific region and the world.

(Source: http://news.xinhuanet.com)