China Tells New U.S. Administration To Step Lightly

His welcome-to-your-new-job call was cordial and formulaic enough, but in his published remarks, foreign minister Yang Jiechi was more forthright towards his new American counterpart, Hillary Clinton, telling her to be careful with sensitive issues that could strain ties between the two nations.

Yang didn’t mention the yuan issue by name (and that isn’t really in the Secretary of State’s purview), but his words came a day after prospective new Treasury secretary Tim Geithner said his boss believed China was a currency manipulator — an accusation immediately denied by Beijing, where there are fears that Geithner was signaling a change in U.S. policy.

This is shaping up as being the most immediate issue between Washington and Beijing, though Taiwan remains ultimately the most sensitive issue that Clinton and President Barack Obama will have to deal with.

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