In Indonesian President Susilo Bambang Yudhoyono’s words, the business tonight was anything but official. At the end of the gala dinner that he hosted for 18 global leaders who huddled in Bali for the ASEAN and East Asia summits, the master of ceremonies of the cultural extravaganza called upon United States President Barack Obama and Chinese Premier Wen Jiabao for a handshake.
But both seemed to have settled for the cold shoulder. Right through Obama’s nine-day tour of the Pacific, the undercurrent of tension between the world’s top two economies has been palpable, especially in the backdrop of China’s increasing assertion of ownership over the South China Sea and US actions to undermine Beijing’s authority. At Honolulu, Obama traded barbs with Beijing over its currency and trade policies. In Manila, Secretary of State Hillary Clinton promised Philippines a second warship and increased military assistance.
In Canberra, the US president said his country was there to stay as a Pacific power and committed to deploy 2,500 Marines in Northern Australia. All along, he asked China to play by the rules. China isn’t exactly fazed. It had, actually, intervened to pull down its renminbi after a bill was introduced in the US calling for punitive action for currency manipulation. Addressing the 14th China-ASEAN summit celebrating the 20th anniversary of their relations, Wen Jiabao said: “The disputes over the South China Sea between the relevant countries in the region have existed for many years. They should be settled through friendly consultation and negotiation between the sovereign states directly concerned. Outside forces should not get involved under any excuse.”