Tensions between the U.S. and China are growing over its island-building in the South China Sea and over suspicions that Beijing was behind a massive hack into a federal government server that resulted in the theft of personnel and security clearance records of 14 million employees and contractors.But both powers have incentives to calm the waters ahead of the Chinese leader's visit to Washington in the fall.
The two countries' top diplomats and finance officials meet here next week for the annual U.S.-China strategic and economic dialogue. The Obama administration says the two governments won't be papering over their differences, but they are expected to accentuate the positive, stressing areas of cooperation, like climate change.
Civilian and military officials will meet Monday to discuss thorny security issues. Secretary of State John Kerry and Treasury Secretary Jacob Lew kick off two days of talks Tuesday with Vice Premier Wang Yang and State Councilor Yang Jiechi on a sprawling agenda, including plans for a bilateral investment treaty.
source: Aol.
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