US Vice President Joe Biden visits China for economic talks

Source Credit: BBC News

US Vice President Joe Biden is flying to China for talks likely to focus on the economy after the downgrading of US debt and ensuing market turmoil.

China is the US government's biggest foreign creditor, holding $1tn (£608bn) of debt, and has called on it to do more to reduce its budget deficit.

Officials say Mr Biden will explain the finer points of a "very strong deficit reduction package" agreed by Congress.

He will also talk of "tremendous mutual interest" in global economic recovery.

The White House would not put it quite this bluntly but Vice-President Biden is hoping to reassure Beijing that President Barack Obama's administration has a handle on economic policy in the wake of ratings agency Standard & Poor's' downgrade.

Human rights

From the American side, there are continuing concerns about China's currency - which is seen as artificially strong - and over a sharp increase in military spending by Beijing.

In recent months there have been claims of cyber-attacks emanating from China, while long-standing differences over human rights and Tibet are likely to surface.

But overall, Washington insists this is fundamentally a partnership and dismisses suggestions that US-China relations are a zero-sum game.

Mr Biden is travelling at the invitation of his counterpart, Xi Jinping, as the Obama administration seeks to strengthen ties with the next generation of Chinese leaders.

The vice-president's official visit to the region will also take in Japan and Mongolia.