HANGZHOU, China -- Doggedly cordial trade talks between top Chinese and U.S. officials were overshadowed Thursday by Beijing's surprise probe into American auto exports, underlining tensions ahead of President Obama's first visit to China.
The start of the formal talks ran two hours late as discussions over nuts and bolts issues dragged on, and officials addressing the opening session referred constantly to the need to speak with "candor" -- in diplomat-speak a word often signaling differences of opinion.
But officials on both sides claimed deals were made on a number of rankling issues.
"We've made solid progress on a series of important trade issues that can help our countries achieve balanced and sustainable growth," U.S. Trade Representative Ron Kirk told reporters.
Mr. Kirk said the U.S. side was "intrigued" by the timing of an announcement that China plans to investigate dumping allegations against the minuscule auto exports to China by Detroit automakers.
He asserted the move did not spoil "very productive and necessary talks" between the two sides.
The Chinese confirmed that such a preliminary review was under way.
"China must protect its industries and companies based on China's laws and World Trade Organization rules," said Commerce Minister Chen Deming, while pledging the probe would be transparent and fair.
If China concludes the car makers are getting government subsidies or are selling their products in China at below-market prices, China could raise tariffs on U.S. auto imports. But punitive measures against Ford Motor Co., General Motors Co. and Chrysler LLC would be unlikely to cause much harm since most of the vehicles they sell to the Chinese are made in China.
Despite the last-minute surprise, Commerce Secretary Gary Locke said he thought the meeting in Hangzhou had "laid the foundation" for Mr. Obama's Nov. 15-18 visit to China.
The talks wrapped up with the signing of 11 technical agreements on cooperation in energy, high technology, tourism and other commercial issues.
China agreed to end a ban on imports of U.S. pork that was imposed in the spring because of swine flu fears, and to crack down on rampant piracy of music and other copyright materials.
The U.S. side applauded China's commitments to draft rules to treat products made by U.S.-invested foreign enterprises in China as Chinese domestic products, rather than foreign ones, in government purchases.
Trade spats between the two countries worsened after the Obama administration last month announced up to 35 percent duties on Chinese-made tires, to be imposed for the next three years.
Still, U.S. officials have said they do not expect any of the various simmering disputes to undo progress in other areas, or to sour overall ties.
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