|
 U.S. government and business leaders aim to strike a balance
between forging agreements and improving relations with the world's
second-largest economy, while sending strong messages about
allegations of Chinese cyber spying and intellectual property
violations as well as Web censorship and China's disputed
territorial claims to islands in the South China Sea.
For the Chinese side, Xi's meetings with Obama and U.S. business
leaders offer the chance to bolster the president's stature at home,
building on a high-profile military parade earlier this month to
mark the end of World War Two, while deflecting attention from the
country's recent stock market rout, slowing economy and a chemical
explosion at a Tianjin warehouse that killed over 160 people.
No policy breakthroughs are likely during Xi's U.S. trip, which is
due to begin with meetings with executives in Seattle and end with a
speech at the United Nations General Assembly in New York on Sept.
28.
 In comments published in the Wall Street Journal before his arrival,
Xi said China's government does not engage in theft of commercial
secrets or support companies that do. He also said China's economy
faces downward pressure but is still operating within a proper
range, adding exchange rate reform will continue and there was no
basis for sustained depreciation in the yuan. <CNY=CFXS>
While in Seattle on Tuesday and Wednesday, Xi and top leaders from
China's Internet regulator and tech firms are expected to meet
leaders from Microsoft, Apple Inc <AAPL.O>, Amazon.com <AMZN.O> and
other tech companies seeking to expand access to the Chinese
consumer market.
Even if no formal agreements are reached, the presidential blessing
"sends an important message to Chinese leadership" to help them,
said Ed Lazowska, Bill and Melinda Gates Chair of computer science
at the University of Washington.
For Boeing, the visit could bring a formal announcement of plans for
an aircraft finishing plant in China. The plant would help Boeing's
Chinese sales, analysts say, and help counter a threat from
Commercial Aircraft Corp of China Ltd [CMAFC.UL], which is
developing a single-aisle aircraft to challenge the top-selling
Boeing 737 and Airbus <AIR.PA> A320 planes.
Xi and Ray Conner, Boeing Commercial Airplanes chief executive, are
due on Wednesday to tour the Everett, Washington, factory where
Boeing makes widebody planes such as the 777 and 787 Dreamliner.
Airbus opened an assembly line in China in 2008 and recently won a
landmark, $11 billion order from China.
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Xi is due to make a policy speech on Tuesday night in Seattle. But
prospects for broad policy changes appear limited. The U.S. Chamber
of Commerce expressed disappointment on Monday at the failure to
narrow disagreement on a bilateral investment treaty that would open
more Chinese business sectors to U.S. investment. The U.S. also
wants to build on climate change commitments and agree on new rules
to cut the risk of confrontation in the Asia-Pacific region, U.S.
and Chinese sources have said.
China's slowing economic growth has raised questions about Xi's
economic stewardship and puts him in a more difficult position than
when he previously met with Obama last November in Beijing. "He
comes into the summit on his back foot," a former senior
administration official said.
Washington has threatened sanctions against Chinese individuals and
companies that have been accused of hacking U.S. corporate
databases.
On the eve of Xi's visit, U.S. Treasury Secretary Jack Lew urged
China to reaffirm its commitment to moving toward a market-oriented,
consumer-driven economy.
In an article in the Wall Street Journal, Lew said questions remain
about the business climate in China because of Beijing's
restrictions on the purchase of foreign technology and its review
process for foreign investment. He also cited concerns about China's
currency valuation policies.
On Monday, Washington state announced four cooperation agreements
would be signed with entities from China, including plans to promote
trade, investment and clean energy research.
(Reporting by Alwyn Scott in Seattle,; Additional reporting by David
Brunnstrom, Matt Spetalnick and Michael Martina; Editing by Ken
Wills)
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