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Obama stresses economic issues in China envoy pick

By MATTHEW PENNINGTON

WASHINGTON (AP) a¿¿ Making Sen. Max Baucus the next ambassador to China reflects the importance the U.S. places on advancing its economic relationship with Beijing despite recent strains on security issues.

The veteran Democrat from Montana lacks foreign policy credentials, but he does have a track record in pressing China over trade barriers and its currency exchange rate.

If confirmed by fellow senators, Baucus will be looking to see that U.S. companies can benefit from market reforms promised by the ruling communist party in November.

The U.S.-China economic relationship is loaded with its own problems, including accusations of rampant Chinese cybertheft of U.S. trade secrets. But it is one where national interests are more aligned than on security, as China challenges decades of U.S. military pre-eminence in the Asia-Pacific.

China's declaration of an air defense zone over disputed territory in the East China Sea and a near-collision of U.S. and Chinese naval vessels this month brought those concerns to the fore. Defense Secretary Chuck Hagel on Thursday described China's conduct in the Dec. 5 incident in the South China Sea as "irresponsible."

But when President Barack Obama announced Friday his intention to nominate Baucus, he was stressing the senator's work over two decades on economic agreements with China that he said have created millions of American jobs. "He's perfectly suited to build on that progress in his new role," Obama said.

Baucus pushed for China's inclusion in the World Trade Organization in 2001, an important step in its integration in the world economy. Since then China has emerged as world's second-largest economy after America's, and Washington's second-largest trading partner. Two-way trade is projected to reach $558 billion in 2013.

China's record on its WTO obligations is mixed, and trade with the U.S. is skewed heavily in China's favor.

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