胡锦涛主席访美专题报道

Hu Jintao visits Microsoft headquarters



Chinese President Hu Jintao (L) waves his hand during his visit to Microsoft headquarters in Seattle, Washington State on April 18, 2006.




Chinese President Hu Jintao waves his hand during his visit to Microsoft headquarters in Seattle, Washington State on April 18, 2006.


Chinese President Hu Jintao receives interview during his visit to Microsoft headquarters in Seattle, Washington State on April 18, 2006.

Apr. 19, 2006 6:56
Chinese president to visit White House
By ASSOCIATED PRESS
     

US President George W. Bush faces a delicate political balancing act Thursday when he welcomes Chinese President Hu Jintao to the White House: seeking China's help to end nuclear standoffs in Iran and North Korea, while urging changes to economic, military and political policies that critics say hurt US interests.

For Bush, the success of Hu's visit will be judged largely by whatever concessions Washington wins on a long list of complaints. Those include allegations that China mistreats its citizens, that an undervalued currency hampers US competition, that China's growing military strength could lead to conflict in the Taiwan Strait, and that Beijing has pursued energy deals with countries the United States sees as tyrannical.

For Hu, the visit provides a chance to burnish China's image at a time when Americans are wrestling with what China's new economic and political clout means here.

"Part of President Hu's challenge is also to speak to the US public," Deputy Secretary of State Robert Zoellick, a leading voice on China in the Bush administration, said in a speech this week. "China does not want to be seen as a threat; it's seeking respect."

Associated Press
Update 7: Hu Meets With Business Leaders in Wash.
By ELIZABETH M. GILLESPIE , 04.18.2006, 11:06 PM

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Chinese President Hu Jintao arrived in the Seattle area Tuesday to meet with business leaders eager for a bigger share of China's markets before he heads to Washington, D.C., for talks with politicians wary of his nation's muscular stance in trade, energy and currency policy.

At Microsoft Corp.'s suburban Redmond campus, Hu said he admired what Microsoft Chairman Bill Gates had achieved. He also sought to reassure Gates that China is serious about protecting intellectual property rights, a key concern for the company as it battles widespread piracy of its Windows operating system there.

"Because you, Mr. Bill Gates, are a friend of China, I'm a friend of Microsoft," Hu said through a translator. "Also, I am dealing with the operating system produced by Microsoft every day," he added, to laughter.

Gates responded: "Thank you, it's a fantastic relationship," and then quipped: "And if you ever need advice on how to use Windows, I'll be glad to help."

Washington state was Hu's first stop on an ambitious four-day U.S. tour. It comes at a time of substantial unease among American businesses, political leaders and the public about how China is using its new power.

His summit Thursday with President Bush will cover a broad agenda, from China's much-criticized currency and other trade policies, to its aggressive search for oil and its positions on the developing nuclear programs in Iran and North Korea.

In his whirlwind visit to the Microsoft campus, Hu - accompanied by Gates, company CEO Steve Ballmer and an entourage of Chinese dignitaries - saw some business technology demonstrations and toured Microsoft's Home of the Future, which features experimental technology.

On Wednesday, Hu planned to tour a Boeing Co. commercial jet plant and deliver a major policy address.

Hu began his trip Tuesday in Everett, about 30 miles north of Seattle, where members of the Seattle Kung Fu Club and a handful of ribbon dancers from a Seattle elementary school welcomed him.

Hu also was greeted by government and business leaders, including Gov. Chris Gregoire and Starbucks Corp. Chairman Howard Schultz.

Hu told Gregoire he didn't choose Seattle simply because it's the closest major U.S. city to China.

"It is also because your state enjoys very good cooperative relations with my country," Hu said through a translator.

China is Washington's third-largest export market, while Washington imported more than $16 billion worth of products from China in 2005.

Demonstrators both in support and opposition to Hu lined the streets near his downtown Seattle hotel. Supporters waved Chinese and American flags.

Members of the spiritual movement Falun Gong, condemned by the Chinese government as an evil cult, staked out all four corners around the hotel to protest treatment of the movement's followers in China.

At the entrance to Microsoft's campus, protesters waved signs in Chinese and English that read "Stop web censorship" and "Release all political prisoners."

Following the meeting at Microsoft, about 100 guests were invited to Gates' home for a dinner Gregoire was hosting there. The guest list included executives from Costco Wholesale Corp., Weyerhaeuser Co., Boeing and Amazon.com Inc.

The menu featured such delicacies as smoked Guinea fowl with hazelnuts, spring radish and Granny Smith apples and filet of beef with Walla Walla sweet onions and Washington-grown asparagus.

The visit came as Microsoft, after years of battling widespread software piracy in the potentially lucrative China market, is hopeful that things are changing. Chinese government officials say they are serious about cracking down on sales of illegal copies of Microsoft's Windows operating system, and some computer makers are pledging to ship more computers with legitimate Windows software installed.

Although analysts say it could be some time before the promised changes have a significant effect on Microsoft's sales, the pledges are a feel-good backdrop for Hu's visit with Gates and other business and government executives.



Associated Press Writers Allison Linn and Peggy Andersen contributed to this report.

China's Hu meets Bill Gates as U.S. trip begins
Wed Apr 19, 2006 3:16 AM BST



SEATTLE (Reuters) - Chinese President Hu Jintao, on his way to talks with President George W. Bush, on Tuesday met with Bill Gates, whose Microsoft Corp. has been a major victim of Chinese software piracy.

The summit with Bush, expected to cover trade and moves to avert nuclear advances in North Korea and Iran, was also likely to touch on intellectual property. U.S. industry groups estimate 90 percent of DVDs, music CDs and software sold in China are pirated.

After the meeting with Gates, the world's richest man, at Microsoft's headquarters, Hu reiterated that China would move against software pirates.

"China is focussed on and has already accomplished much in creating and enforcing laws to protect intellectual property," he said. "We take our promises very seriously."

After the meeting, Hu was invited for dinner at Gates' $100 million (56 million pounds) lakeside mansion with about 100 other guests.

China's Ministry of Information Industry, which regulates the technology sector, has recently begun requiring Chinese computer makers to preload legal software on their machines. It is not clear how well that order, which was issued just this month, is being enforced.

In Seattle, advocates of various causes protested near the stately Fairmont Hotel where the Chinese president was staying. They included supporters of the Falun Gong spiritual movement, which is banned in China, some demanding China get out of Tibet and others asking China to let Taiwan become independent.

In Seattle's Chinatown, many stores hung Chinese and U.S. flags to welcome Hu, and many in the crowd outside the hotel were there to support the Chinese president, or simply curious about all the fuss.

IRAN, PIRACY AND TRADE

In Washington, D.C. on Thursday, Hu will lunch at the White House where Bush said he would bring up Iran's nuclear programme. Bush wants China to agree to more pressure on Tehran through the U.N. Security Council, something Beijing is resisting.

"I intend of course to bring the subject up of Iranian ambitions to have a nuclear weapon," Bush said on Tuesday. "We'll continue to work diplomatically to get this problem solved." Iran says its programme is just for nuclear energy.

Before the visit, China sought to quell U.S. trade complaints by signing contracts worth $16.2 billion while Vice Premier Wu Yi visited the United States last week.

Bush, visiting a school in a Washington D.C. suburb, said China was both a partner and competitor.

"We can either look at China and say, let's compete with China in a fair way, or say, we can't compete with China and therefore kind of isolate ourselves from the world. I've chosen the former route for the United States," the president said.

But U.S. Deputy Secretary of State Robert Zoellick said Beijing had been "agonisingly slow" in meeting U.S. demands to reform its currency. U.S. officials say the yuan is undervalued, making Chinese exports artificially cheap.

The U.S. trade deficit with China totalled $202 billion last year.

Hu also wants Bush to offer some assurance that the United States will restrain Taiwan's independence-leaning President Chen Shui-bian, Chinese analysts said. Beijing says the self-ruled island must accept reunification with the mainland after over half a century of separation.

Before leaving Seattle on Wednesday, Hu will visit Boeing Co.. Shortly before his visit, China signed a deal with the company to buy 80 737 jets worth around $4 billion.

Hu calls Gates "a friend of China"
By Allison Linn

Associated Press pool report

Microsoft chairman Bill Gates told Chinese President Hu Jintao the company is at "just the very beginning of what's possible" in technology, and then showed him some of what may lie ahead.

Hu's visit included a tour of Microsoft's Home of the Future, which features experimental technology that might someday be used in people's living spaces. In one demonstration, a vase with a radio frequency identification tag was placed on a display, prompting the display to show pictures of areas where Hu has worked and lived.

In the kitchen, the counter displayed a recipe and instructions in Chinese for making foccacia bread, prompting Hu to ask if you still need a housekeeper if you have RFID tags.

Later, watching a demonstration on a Tablet PC of research being done in Asia, Hu noted that it is difficult to type equations, and being able to write with a stylus makes it easier to do such work on a computer.

Hu later was greeted by elementary school children from Seattle's John Stanford International School. At another demonstration of the Tablet PC, Hu wrote for the children, in Chinese, "Long live the China-American friendship."

He then said "thank you" to the children in English.

Later he said to Gates: "I admire what you have achieved at Microsoft," Hu said.

"Because you, Mr. Bill Gates, are a friend of China, I'm a friend of Microsoft," he said.

"Also, I am dealing with the operating system produced by Microsoft every day," he added, amid laughter.

"I certainly look forward to the extension of your cooperation with China," Hu said.




Hu also said he would certainly welcome a further increase in Microsoft's investment in China.

"I'd also like to take this opportunity to assure you, Bill Gates, that we will certainly our words in protecting intellectual property rights," Hu said.

Gates responded: "Thank you, it's a fantastic relationship. And if you ever need advice on how to use Windows, I'll be glad to help."

China's Hu in Seattle for first stop of key US visit
04.18.2006, 10:21 PM


SEATTLE (AFX) - Chinese President Hu Jintao received a celebrity welcome in Seattle at the start of his first official US visit, as the West Coast state of Washington seeks to boost lucrative trade ties with China.

While trade disputes are expected to hover over Hu's four-day US visit, in Seattle the 63-year-old leader of the world's most populous country and his wife Liu Yongqing were greeted by a multiracial local kung-fu club drumming and Chinese dragon and lion dances.

Waving and holding hands, Hu and his wife were welcomed by a delegation including Washington Governor Christine Gregoire, Washington Senator Maria Cantwell, Chinese-American former governor Gary Locke as well as top Boeing executives.

Hu praised Seattle and Washington state and said they were 'important American gateways to China,' noting that rapidly growing trade between China and the state have contributed to Sino-US relations.

'I'm very happy,' Hu told reporters after shaking hands with the welcoming crowd. 'I hope my visit... will strengthen dialogue, deepen cooperation.'

He will be wined and dined later Tuesday by the world's richest man, Microsoft's Bill Gates, in a 100-seat dinner hosted by Gregoire.

Prior to that he will be given a tour of Microsoft Corp's Home of the Future.

On Wednesday, Hu will be taken on a tour of The Boeing Company's Everett plant by Boeing's commercial airplane president Alan Mulally.

Starting his visit with Boeing and Microsoft -- two companies with strong interests in China, appears to be an attempt by Hu to show the US that trading with China also helps Americans.

Boeing has benefitted from China's numerous purchases of its aircraft, including a deal for 80 planes worth 4.6 bln usd this month.

Microsoft reaped the rewards of a new rule that requires all new computers made and sold in China to be pre-installed with authentic software to prevent piracy, signing a major deal Monday with China's best-selling PC maker Lenovo to pre-install its operating systems, Seattle media said.

In Seattle, Hu will meet with leaders of companies at the forefront of technological development, which fits with China's goal of transitioning from being a mainly low-wage manufacturing based economy to an innovation-driven economy.

Intellectual piracy and Internet censorship will be on the agenda of discussions, the Seattle Times quoted a Microsoft official saying.

Much of the Microsoft software used in China is pirated. US companies also have had to censor their Internet content in China, and are facing increasing criticism at home for this.

The Seattle Trade Development Alliance, which is organizing Hu's visit, said Washington state was a natural place for Hu to visit.

It is one of the few states with a trade surplus with China. Two-way trade in 2004 grew 400 pct from 2000, reaching 20.3 bln usd, making China Washington's third largest trade partner after Japan and Canada, Sam Kaplan, vice president of the Alliance said.

'If current projections continue, China will eventually be our number one trade partner,' said Kaplan.

China's Washington Gambit
Hu Jintao will try to smooth over differences on his U.S. trip, but Beijing will continue to set its own pace for currency flexibility

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Chinese President Hu Jintao's meeting with President George W. Bush in Washington on Apr. 20 will spotlight the relationship between two nations' currencies. Hu isn't expected to deviate from Beijing's often-repeated intention to move toward gradually increasing currency flexibility, but without another revaluation of the 2.1% magnitude announced last July. U.S. legislators and industry groups have stepped up political pressure for greater appreciation as a way to narrow the record $202 billion bilateral trade gap posted in 2005. Advertisement

President Hu might be able to unveil a few sweeteners to soothe a restive Washington, including gestures toward intellectual-property protection, but the focus will be on the U.S. contention that China is deliberately depressing the yuan's value in order to make the country's exports cheaper.

Markets appear to accept that Beijing means what it says when it insists that further yuan flexibility will be carried out gradually. One-year non-deliverable forward (NDF) currency futures contracts imply a roughly 4% appreciation in the yuan to around 7.7 per dollar in 12 months.

MORE MOVEMENT. Upon abandoning the formal peg to the greenback last year, Beijing indicated it would reference movement in the yuan against an unspecified basket of currencies. When measured against a basket of currencies, weighted by their share of total Chinese trade, the yuan has trended sideways for much of this year, hardly the sort of appreciation that would put much of dent in the country's balance of payments surplus.

This compares with the fairly substantial appreciation by approximately 8.5% during 2005. Over half of this came on the back of the strong performance by the dollar, which also appreciated vs. the Chinese basket of currencies.

China is proceeding at its own pace in permitting more movement in response to market forces. Continued intervention in foreign-exchange markets by the People's Bank of China (PBoC) to limit the yuan's appreciation translated into accumulation of an additional $56.2 billion in Beijing's foreign reserves during the first quarter, showing no let-up from the pace that saw annual increases of $209 billion in 2005 and $207 billion in 2004.

RELAXING CONTROL. China's forex hoard has reached $875.1 billion, surpassing Japan with the world's largest stockpile of international reserves, and a major factor supporting U.S. Treasuries. This milestone can only heighten pressure on Beijing to permit more appreciation in its exchange rate, both in complaints from trading partners, as well as straining China's own capacity for monetary control.

Chinese policymakers insist they need more time to establish the country's forex market infrastructure, after launching over-the-counter trading by 13 foreign and domestic banks designated as market makers in January. The PBoC has also begun to conduct forex swaps with major commercial banks.

In another step in China's gradual move towards a market-driven exchange rate, which President Hu will be able to point to in Washington this week, Beijing last Friday announced it was relaxing capital controls, making it much easier for individuals and companies to buy foreign currency for financial investment abroad (raising the ceiling for individuals to $20,000 a year, from $8,000). Ironically, by creating additional demand for the dollar, this reform could actually ease market pressure for yuan appreciation generated by the Chinese trade surplus and investment inflows, and reduce the amount of official intervention to limit the yuan's appreciation vs. the U.S. currency.

CONGRESSIONAL ACTIONS. China risks becoming the focus of political attention through the U.S. Congressional elections in November, making it difficult for a politically-weakened Bush Administration to resist protectionist pressures. U.S. Senators Charles Schumer (D-N.Y.) and Lindsey Graham (R-S.C.) were reasonably diplomatic on their fact-finding visit to Beijing in March. They had threatened to proceed to a vote by Mar. 31 on their proposed 27.5% tariff on Chinese exports to the U.S. unless satisfied that Beijing was moving to allow greater appreciation toward market value in the yuan, but vote on the bill was delayed at least until after the visit by President Hu.

Before the end of April, the U.S. Treasury is scheduled to release its semiannual report on the currency policies of trading partners, where it could be obliged to label China a "currency manipulator," formal grounds for U.S. tariff imposition. That step could potentially activate a number of bills that are in the pipeline on Capitol Hill which would impose more restrictions on trade with China.

In a similar vein, a bill prepared for introduction by Senators Chuck Grassley (R-Iowa) and Max Baucus (D-Mont.) would increase pressure to officially chastise China for its currency policies. Under the proposed new rules, no intent would be required. Instead of using the term "currency manipulator," the Treasury would be asked to seek out "currency misalignments" and threaten specific sanctions, though far less Draconian than a 27.5% tariff. It remains difficult to foresee how the politics will play out.

STILL GROWING. Though the currency issue will top the agenda during Hu's visit, Washington can't easily push China beyond its comfort zone. One risk for the in pursuing a harder line is aggravating their second-biggest creditor, after Japan. China's ownership of U.S. government debt in January grew to $262.6 billion, or 12% of all foreign-owned Treasuries, up from $61.5 billion, or 6.1%, five years ago. At the end of the day, the speed of Chinese currency adjustment will depend upon what risks they see from continuing the current trajectory, and what benefits from stepping out of the way a bit more.

Conditions are favorable for pursuing greater currency flexibility, since the Chinese economy remains very strong and would presumably be able to withstand any potential drag from a strengthening yuan. China's gross domestic product release, due Thursday, reportedly will show first-quarter growth of 10.2%, year-over-year, up from 9.9% in the fourth quarter.

So far, there's little evidence of any let-up in the country's recent record of robust annual growth. Data through March suggest that the annual 2006 trade surplus should continue near the record $102 billion reported for last year. There are also benefits from currency appreciation in lowering import prices in the face of soaring global commodity prices.

In the end, recognition of their mutual dependency, both economic and political, may well keep both China and the U.S. from allowing differences over the exchange rate to poison their relationship -- one that's rapidly evolving into the most important in the world.

Published: Thursday, April 20, 2006

Boeing greets Hu with cheers
The president of China predicts a "bright tomorrow" for its future with Boeing.


Herald Writer
Chinese President Hu Jintao addresses Boeing workers at the Everett plant after an introduction by Boeing Commercial Airplanes CEO Alan Mulally.

EVERETT - Chinese President Hu Jintao told thousands of workers at the Boeing Co.'s assembly plant on Wednesday that their airplanes are vital to his country's rapidly growing commercial aviation industry.



Chinese President Hu Jintao addresses Boeing workers at the Everett plant after an introduction by Boeing Commercial Airplanes CEO Alan Mulally.
Boeing has an opportunity to play a huge role in the expansion of China's airlines, Hu said. In the next few years, the company will deliver 380 new jetliners to China, including 150 737s and 60 787 Dreamliners, Hu said through a translator.

During his stop Wednesday at the Everett plant, Hu toured the 747 assembly line. He sat in the back of a modified golf cart as it tooled around the world's largest building by volume. Hu also looked at a new 777 being built for Hong Kong's Cathay Pacific Airways and part of a model fuselage for the 787 Dreamliner.

Hu said he was impressed by the factory's technology, its experienced workers and the "innovative spirit you see at the Boeing plant."

In his 10-minute speech to more than 5,000 Boeing workers, Hu said his country's ties with Boeing are a "living example" of the possible benefits from expanded trade between U.S. and China.

"Boeing has a very close partnership with China. Boeing, in fact, is a household name in my country," he said, noting that he flew from China on a 747-400 built in Everett.

He said Chinese airlines have bought nearly 680 aircraft from Boeing since the two established a relationship in 1972. More than two-thirds of the aircraft in China's civilian fleet are Boeing models, he added.

His government estimates that China's airlines will need another 2,000 planes in the next 15 years to keep up with demand for air travel there.

"This clearly points to a bright tomorrow for future cooperation between Boeing and China," Hu said. "I sincerely hope that the cooperation between Boeing and China will strengthen in the future and expand to become even more successful.

"I also sincerely hope that the economic and trade relations between our two countries in general will prosper further and fly higher, just like a Boeing plane," he said to cheers from the audience.

Hu then received a Boeing cap from Paul Dernier of Mukilteo, an installations supervisor on the 777 line. Hu responded with an uncharacteristic but heartfelt hug.

"I've never hugged a president before," Dernier said afterward.

Allen Huang, a software developer for the 787, said Hu seemed like a personable leader in his speech and in his response to the Boeing workers. For Huang, a native of China whose first plane ride was on a Boeing aircraft, Wednesday's visit had special meaning.

"China and the U.S. used to be allies in World War II, and I'm very glad they're working together now," he said.

Alan Mulally, CEO of Boeing Commercial Airplanes, ended the ceremony with an exuberant shout of "China rocks!"

"Our plan is to continue working closely with China, its airlines and its industries to build an even stronger future together," he said in his earlier introduction of Hu. "We will continue to be a leading advocate for stronger trade relations between our countries."

Published: Thursday, April 20, 2006

Hu 'bullish' in Everett
Chinese leader talks friendship and trade

By Bryan Corliss
Herald Writer


EVERETT - If Hu Jintao was out to win hearts and minds here Wednesday, he succeeded.


Dan Bates / The Herald

Chinese President Hu Jintao hugs Paul Dernier of Everett after the 42-year-old 777 supervisor from Mukilteo presented him with a Boeing cap Wednesday at the company's Everett plant.
Speaking in a room full of 600 corporate leaders and elected officials, the Chinese president touched on all of the contentious trade issues between China and the United States - trade imbalance, currency valuation, intellectual property rights and market access.

"Given the rapid growth, sheer size and wide scope of our business ties, it is hardly avoidable that some problems have occurred," Hu said during his speech at the Future of Flight museum.

"However, mutually beneficial cooperation and common development remain the defining feature of our business relations."

The speech was "very bullish from our perspective," said Fred Kiga, director of government and corporate relations with Russell Investment Group, the Tacoma-based financial services giant. "That was a very important speech."

"He may be from a communist country," added state Sen. Paull Shin, D-Edmonds, "but he speaks like a typical capitalist."

Quoting a Chinese poet from 1,200 years ago, Hu said, "I will brave the winds and waves to cross the vast ocean."

His stop in the Puget Sound region was perceived by many as a safe harbor on that journey, a chance to receive a friendly reception from an American audience before facing a more contentious crowd in Washington, D.C., where Hu meets with President Bush today.

Hu's proposals - lowering trade barriers, cracking down on software piracy and lessening the trade imbalance - were well received by his Puget Sound-area audience, which included corporate chiefs from the Boeing Co., Microsoft and Starbucks, along with two governors, some congressmen and former Secretary of State Henry Kissinger.

State officials pointedly drew a distinction between the two Washingtons on Wednesday.

"We've talked about the 'real' Washington and the 'other' Washington," Gregoire said. The real Washington, she said, is "the home of Boeing, the home of Microsoft and the home of many other trade opportunities."

Washington is the only state that actually runs a trade surplus with China, Gregoire said - largely because of Boeing. The state's businesses sold $5 billion worth of goods in China last year.

According to a previously prepared English translation of his speech, Hu spoke of a special relationship between China and this region, saying the "American Northwest is closer to China than any other region of the American continent. It was also the first region in the United States to start trading with China."

There are more opportunities for American businesses in China, Hu said. China "welcomes American business investment in China's high-tech industry, modern agriculture, service industries, environmental protection industries and infrastructure development."

That would be to everyone's benefit, said Microsoft Chairman Bill Gates, who spoke at Wednesday's luncheon after hosting Hu at a private dinner Tuesday night.

"Both the United States and China will prosper in an environment of open trade," he said.

Hu invited U.S. companies large and small to set up regional operations in China.

But at the same time, "China encourages Chinese companies to seek business opportunities in the United States," Hu said. "Our two governments should facilitate and support cooperation between the business communities of the two countries."

Chinese ownership of U.S. companies has been a contentious issue in Congress. But, Hu said, "trade issues should not be politicized."

The U.S. trade deficit with China has topped $200 billion for the past two years. China takes the imbalance seriously, Hu said. "China does not seek a large trade surplus," he added.

Much of the reason for the imbalance is structural, Hu said, noting that the United States primarily imports goods from China that it no longer produces. "Even if not from China, the United States would still have to import these products from other suppliers."

China also is committed to cracking down on software piracy, Hu said. It has ordered all government computers to run licensed software and is promoting the use of licensed software among large Chinese enterprises.

Gates said he was encouraged by Hu's commitment.

And Kiga said Russell considered that "a major olive branch."

Hu defended China's position on currency valuation. Some in Congress have criticized China for keeping the value of its currency, the yuan, artificially low, saying that exacerbates the balance-of-trade problem by making Chinese goods cheaper and American products more expensive.

But Hu said a new policy adopted last year allows the yuan to float against a market basket of eight major currencies. The goal is for a stable Chinese currency that serves both U.S. and Chinese interests.

After his speech, Hu departed Paine Field in a China Airlines 747 for his meeting with Bush. He will encounter members of an administration and Congress seeking to press him on noneconomic issues such as human rights and geopolitics - subjects the Chinese president did not raise while in Washington state.

Everett business consultant Barbara Earl said Hu's message was: "We need each other, we need each other bad."

And Boeing Commercial Airplanes chief Alan Mulally said he was impressed by Hu's use of the phrase "mutually beneficial," which came up six times in his speech.

"I've never heard that so many times," he said. "They really want to work together."

Eleven-year-old Jake Hecla of Everett agreed. "I thought the speech was wonderful," he said. "The point of it was probably that the United States needs China and China needs the United States in order for our economies to survive."

Shin, who speaks Mandarin Chinese, said Hu's speech impressed him for its meticulous detail and rich vocabulary.

"He feels it inside," the legislator said. "He sees business first. He wants closer dialogue with us."

Starbucks Chairman Howard Schulz said he came away impressed by Hu.

"He is a very special person," Schulz said. "From minute one, he came to earn respect, and I think he did."

Herald writer Jerry Cornfield contributed to this story.

China reassures USA about future trade relationships.

Chinese President Hu Jintao joked with his hosts at the Boeing factory in Seattle on the second day of a state visit. Boeing aircraft already make up more than 60 percent of the chinese national fleet and, earlier this month, China bought a further 80 planes from Boeing worth 4.6 billion dollars. Hu Jintao has carefully planned his first official US visit by stopping in Washington State, which has a booming trade relationship with China thanks to Boeing and Microsoft. The US is concerned about its 200 billion dollar trade deficit with China. During lunch with more than 600 business leaders including Henry Kissinger, the Chinese President said disagreements over trade should not be politicised. Today, Hu Jintao flies to Washington for a summit with US President George Bush.