A two day meeting is taking place between U.S. and China. President Obama will address the meeting which is being attended by Wang Qishan and Dai Bingguo, Chinese Vice Premier and State Councillor respectively. It seems that China is worried about the value of dollar. Currently China holds more than 800 billion dollars of US debt. Apparently this number is for US Treasury alone.

The Chinese government is scared that inflation will be there in U.S. especially after looking at the way President Obama is spending. The Chinese fear that the value of dollar will go down and hence causing the U.S. debt which China holds, to devalue significantly. Timothy Geithner, U.S. Treasury Secretary, will try his best to assure the Chinese regarding their assets. He will require a new approach as he has already tried to convince China regarding this issue previously though he didn’t meet success.

The North Korean nuclear program will also be discussed in the meeting. Hilary Clinton recently praised China’s approach towards North Korea’s nuclear program. She labeled China as “positive and productive”. But still the economic talks will be the most important part of the meeting. It seems both the countries realize that they need each other’s support to survive as both are current world super powers.