Chinese President Xi Xinping opened the new round of the US-China dialogue with remarks seeking to alleviate tension between the two countries over the South China Sea,80% of which China considers to be its territorial waters.He wants to see confrontation eased in the region.China and the US should talk more often to reduce tension and build more trust.The vast Pacific should be a stage for inclusive cooperation,not a stage for competition,Mr.Xi said.The Pacific shouldn't be a battlefield for different parties.*
Economically,China wants tariffs removed from cold rolled steel;and it wants market economy status,having signed on to the World Trade Organisation 15 years ago.In that status,it would be more difficult for other countries to punish China with tariffs.Mr.Xi also wants an investment treaty.*
Nonetheless,questions are being raised about China's intentions with regard to Scarborough Shoal in the South China Sea,which it claims along with Taiwan and the Philippines.Will China build a military airstrip there as it has in the Spratly Islands?
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