Hu gives no hint of concessions in Everett speech

For 26 hours, Chinese President Hu Jintao basked in the warm welcome of a region that has strong economic ties with his country. But he wrapped up his visit with a speech conveying that he is unlikely to offer concessions when meeting with President Bush today in Washington, D.C.

Concluding his two-day visit to the Seattle area Wednesday, Hu gave a sweeping policy address that contained no surprises but laid out firm positions on issues that have caused friction with the U.S.

He found a receptive audience among the 600 state business and government leaders who turned out for the luncheon at the Future of Flight Museum and gave him standing ovations before and after the speech.

Hu called the Northwest a good example of overall China-U.S. business cooperation. Globalization, hastened by information technology, has made the world more interdependent, he said.

As a result, "we must be global in view and outlook, give a high priority to exchanges and cooperation, draw on each other's experience, and seek mutual benefits, win-win outcomes and common development," he said.

In a signal that he would not yield to pressure from Washington, D.C., on the trade deficit, Hu told the audience that "trade issues should not be politicized."

China takes the U.S. trade deficit seriously, Hu said, but he added that the U.S. itself also bears responsibility.

"At least 90 percent of U.S. imports from China are goods that are no longer produced in the United States," Hu said. "Even if not from China, the United States will still have to import these products."

Hu did not take questions from the media, and answered only two written questions from the audience. He gave only a small nod toward political reform, saying that in the next 15 years, "China will further develop its economy, improve democracy, advance science and education, enrich culture, foster social harmony and make life better for its people."

Some experts said Hu was the first Chinese leader to weave together such a comprehensive list of topics in such detail. But by discussing everything, Hu emphasized nothing.

Former U.S. Secretary of State Henry Kissinger, who was instrumental in opening China to the U.S. in 1972, said Hu's remarks were unusually warm. "The tone of it was very positive," said Kissinger, who met with Hu earlier in the day along with other China experts. "I'm very happy to see that we're making progress" in the U.S.-China relationship.

David Bachman, a professor at the University of Washington and expert on Chinese politics, noted that Hu basically reiterated the Chinese position on many topics, suggesting that "there's not a lot of give in that position."

Hu's emphasis on the mutual benefits of trade plays well in Washington state, "with the not-too-subtle subtext that you better work on these crazy people in D.C. to make sure this continues," said Bachman.

Microsoft Chairman Bill Gates introduced Hu at the luncheon, saying "although you've only been here one day, I hope you've felt the strong sense of friendship and our commitment to partnership and cooperation."

But Gates also hinted that China's development requires embracing new concepts such as freedom to access the Internet — a delicate subject at a time when U.S. companies face pressure to accept government censorship of their Chinese sites.

"People and business everywhere are harnessing the power of the Internet, which will have a profound impact on economic development, education and communications," Gates said. "Industry and governments around the world should work even more closely to protect privacy and security and promote the exchange of ideas, while respecting legitimate government considerations."

Some saw specific offers in the speech. U.S. Rep. Rick Larsen, D-Lake Stevens, heard in Hu's address a pledge to address China's undervalued currency, a key point of friction with Congress and the Bush administration.

"As translated, he said he commits to a flexible exchange rate and [currency] equilibrium," Larsen said. "Those are the right words that I hadn't heard in speaking to other Chinese leaders, and this is the president of China talking.

"I think it sets up nicely the meeting tomorrow with Bush, where they can talk in more detail in private about what further steps that might mean for China."

But Larsen and U.S. Rep. Jay Inslee, D-Bainbridge Island, noted the commitment wasn't specific. "Those looking for significant currency relief will be disappointed," Inslee said.

On intellectual property, Hu's Tuesday visit to Microsoft signaled perhaps not a breakthrough but a significant step forward in halting software piracy. "Look at the smile on Bill Gates' face," Inslee said.

"I think President Hu made a strong point to encourage innovation and protect intellectual property," said Ya-Qin Zhang, who heads Microsoft's research and development offices in China. "We're really excited about that."

Larsen praised Hu for pledging to increase China's purchases of imports. "They're seeking to increase the ability of Chinese to purchase consumer goods," Larsen said. "That gives us in the U.S. opportunity to tap into that growing market."

Hu revealed a softer side to his personality, departing from his usually stern demeanor several times to employ some American-style techniques: hugs and humor.

At Boeing, he gave an unexpected hug to a worker on stage, and he embraced Kissinger warmly at the luncheon. While having dinner at the Gates mansion, Hu joked to the guests that if he wasn't the president of China, he might spend some time hanging out at Starbucks.

When he landed and departed from Paine Field in Everett, he held his wife's hand and took the time to go down the line of spectators and shake some hands.

During his visit to Boeing Wednesday, he gave manufacturing supervisor Paul Dernier an unexpected hug after Dernier presented him with a Boeing baseball hat.

"A lot of people I talked to said they've never seen him hug anyone," said Dernier, who has supervised the planes bound for China. "So I was totally caught off guard."

Dernier said the president thanked him in English.

"It was an international embrace," Dernier said. "My first presidential hug — I feel pretty special."

Alan Mulally, Boeing Commercial Airplanes chief executive, said after Hu left that the visit "exceeded my expectations."

"For the president of China's first visit to the United States and to have the first place he stops be Paine Field and his thank you to Boeing workers — it makes my eyes water."

Charles Bofferding, executive director of Boeing's white-collar union the Society of Engineering Employees in Aerospace (SPEEA), saw significance in Hu's visiting Microsoft and Boeing before he met with President Bush.

"It's telling about the way the world is shaping up," said Bofferding. "It's driven by geo-business rather than geo-politics."

Kristi Heim: 206-464-2718 or kheim@seattletimes.com