Both sides have to be careful, they have to be responsive to the rising nationalist sentiments in their respective countries, so there is very limited room for maneuver,

The money we worked hard to earn is lent to foreign countries, allowing them to earn more money. This is not as good as us using the money to buy U.S. goods directly, which can effectively reduce the (trade) deficit.

There is a bit of speculation that Mr Jiang has been pushed aside, as there are certain subtle pressures suggesting that he should step down.

But it's for sure this is not going to make Beijing make any meaningful concessions under pressure.

The Chinese leadership has been more severe in the censorship of the media, its crackdown on underground churches, dissidents and the Internet.

An improvement in his image in the eyes of the Chinese people will strengthen his hand and show that he is in control, that he is no longer restrained by Jiang Zemin.