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SEOUL, Nov. 11 (UPI) -- The United States and China, because they are global economic leaders, are obligated to deal with strong sustainable growth, President Obama said Thursday. Obama had bilateral meetings during the Group of 20 summit in Seoul with Chinese President Hu Jintao and German Chancellor Angela Merkel, two critics of the Federal Reserve's recent decision to inject $600 billion dollars into the U.S. economy as a stimulation and job-creating effort.
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Obama and Hu met for about 80 minutes in South Korea, focusing "the bulk of their discussion" on the exchange rate issue, and economic and security issues, White House spokesman Robert Gibbs said in a read-out of the meeting.
White House officials said Obama pointed to the importance of China continuing to work on its exchange rates while Hu reiterated his country's strong commitment to a more flexible exchange rate regimen and the progress being made on the matter.
Obama and Merkel both recognized the importance of trade to both countries' economies and of the strength of the global economy, Lael Brainard, Treasury Department undersecretary for international affairs, told reporters.
Brainard said Obama and Merkel both brought up the Fed matter as a "sort of glancing reference to the concern that of course we all have, which is that we're all trying to figure out that direct policy mix to bolster growth, but not creating risks that are going to need careful management."
Before his session with Hu, Obama said, "As two of the world's leading economies, we've got a special obligation to deal with ensuring strong, balanced and sustainable growth."
He said a Strategic and Economic Dialogue has been created to work on a "whole range of issues," noting Hu was invited to Washington for bilateral discussions. "And we're seeing significant progress."
"The Chinese side stands ready to work with the U.S. side to increase dialogue, exchanges, and cooperation so that we can move forward the China-U.S. relationship on a positive, cooperative and comprehensive track," Hu said through a translator.
Before meeting with Merkel, Obama said the U.S.-German alliance "is one of the cornerstones of prosperity and peace ... ."
Merkel said the two countries have worked together in critical areas of global concern, and will continue to do so.
"I think it's a very good thing to yet again demonstrate that we are willing to share responsibility together and to use this meeting here to send a signal, really, a good signal for our global growth," Merkel said. "I think it's very necessary to work together because only together will we be able to tackle the crucial problems in the world today -- problems and issues such as Afghanistan, the upcoming NATO summit meeting, and also obviously this meeting of the G20."
Relations with North Korea also are expected to be on the G20 agenda, as the United States and its allies search for ways to encourage North Korea to return to six-party talks aimed at convincing Pyongyang to abandon its nuclear program, The New York Times reported.
In another G20 side meeting, Obama is to meet with South Korean President Lee Myung-bak, whose country's relations with its northern neighbor have deteriorated since the March sinking of a South Korean warship, apparently by a North Korean torpedo. North Korea has denied involvement.
