Biden focuses on business in 2nd day of China talks

Biden, on the first stop of an Asia tour, met his Chinese counterpart Xi Jinping on Thursday, to build a relationship with the man widely expected to take over as president from Hu Jintao in early 2013.

US officials said those talks -- which ran over by roughly 45 minutes -- were successful and touched on issues from human rights to problems in both countries' economies.

They downplayed concerns expressed in Chinese media about the US debt and deficit situation, saying Xi expressed confidence in the strength of the US economy.

China is the biggest foreign holder of US debt.

Biden will see whether that confidence is shared by China's other top leaders on Friday.

He meets in the afternoon separately with Hu and Premier Wen Jiabao, both of whom are likely to seek Biden's take on the Washington debate to raise the US debt ceiling that brought the country to the edge of a default.

First, Biden will join US and Chinese business leaders for a discussion about "experiences operating in both countries, including opportunities, obstacles, and the role that governments can play to enhance cooperation and address challenges," the White House said.

Some big name executives will attend. Coca Cola chief executive Muhtar Kent and Caterpillar Inc. Group President Richard Lavin will headline a US slate that includes representatives from JP Morgan, General Motors, and GE.

The exchange rate may be one issue that is raised.

Washington has pressed Beijing to allow its yuan currency to appreciate against the US dollar to combat a hugely lopsided trade balance.

Xi and Biden discussed the issue on Thursday.

"The vice president ... raised the exchange rate in the context of China doing things that will make it easier for us to maintain the policies that we want to maintain, both in trade, open investment policies," a US official told reporters.

Copyright Reuters, 2011