China This Week: President Hu at APEC; Investment Promises to Wal-Mart; Anti-Inflation Measures

Hu Urges Trade Liberalisation at APEC:  Chinese President Hu Jintao urged the Asia-Pacific Economic Cooperation (APEC) economies to promote liberalization and facilitation of trade and investment.

Addressing the second session of the 18th APEC Economic Leaders' Meeting, Hu said, "APEC should continue to uphold the spirit of the Bogor Goals [of free and open trade and investment], adapt to the changing situation and actively tackle new challenges, leverage its own strengths and further improve itself."

Hu also defended the role of newly emerging markets in world economic recovery and gave assurances that China seeks to expand domestic demand growth and remains committed to reforming its exchange rate.

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China Economy Weekly: Trade Battles with US, Power to Tibet, Investing In General Motors

Beijing Buys More US Debt:  China slightly increased its holdings of US Treasury debts in July, to $846.7 billion, after two months of net sales.

The news allayed concerns that Washington's largest creditor was moving away from investing in dollar assets.

Coincidentally, the debt data came out as two US Congressional hearings were being held on China's exchange rate policy. 

The hearings were attended by Treasury Secretary Timothy Geithner, who acknowledged that the two countries "have significant economic interests" in their relationship and highlighted the importance of the Chinese market on the US economic recovery. However, he expressed dissatisfaction with the pace of the yuan's appreciation.

China responding by warning that obsessing over yuan appreciation would not solve trade problems in the US and "might make things even worse"

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