Interesting phone call - I am not sure the real issues were addressed. Basically China needs to export to the US in order to keep it's economy going and needs the US to clean up it's financial system. The US wants continued Chinese investment, buying of treasury debt, and help to clean up this mess.
Hu:
In the Chinese version, there is this line: "Hu said the core interest of either country should be respected by each other and taken into consideration." In other words: no insulting comments about our currency exchange rate, please.
Obama:
"global trade imbalances" -- a point the White House noted he "stressed" -- that means he is really saying that China's currency is too weak and the government needs to do something about it.
In other words, stop manipulating it. Or at least manipulate it the way Washington wants.
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