"The United States and China sought on Wednesday to stress the positives in their relationship after three days of high-level talks, but failed to narrow differences on the most contentious issues of cyber and maritime security. U.S. Treasury Secretary Jack Lew said both sides had committed to work more towards a Bilateral Investment Treaty already seven years in the making and said China had pledged to limit intervention in currency markets. It also pledged to further liberalize exchange rates, open capital markets and expand access to foreign financial service firms. The two countries also stressed cooperation in combating climate change, their shared concerns about Iran and North Korea's nuclear programs, the fight against Islamist militancy, and support for global development," reports Reuters.
Bloomberg writes, "China's stocks slumped in volatile trading, led by technology companies, after traders sold shares purchased with borrowed money for a third day. The Shanghai Composite Index slid as much as 4.4 percent in the last hour of trading, sending a gauge of 30-day volatility to a seven-year high. All 10 industry groups in the CSI 300 Index dropped, with a sub-index of technology companies plunging 6.3 percent for the biggest loss. Beijing Shiji Information Technology Co. and Hundsun Technologies Inc. both fell by the 10 percent daily limit. The Shanghai Composite tumbled 3.5 percent to 4,527.78 at the close, erasing a gain of 0.7 percent and snapping a two-day, 4.7 percent advance. The gauge posted its biggest loss since the global financial crisis last week on concern valuations had risen to unsustainable levels and a flood of initial public offerings were sucking funds from existing equities."
Reuters reports, "China's Defence Ministry expressed anger on Thursday after the U.S. Senate passed a bill which would encourage self-ruled Taiwan, which Beijing claims as its own, to take part in U.S. military exercises. Under the Taiwan Relations Act, enacted in 1979 when Washington severed formal ties with the island in favor of recognizing the People's Republic of China in Beijing, the United States is obligated to help Taiwan defend itself. The Senate bill, passed last week, says that Taiwan "should be encouraged to participate in exercises that include realistic air-to-air combat training", as well as advanced training for its ground forces, attack helicopters and surveillance aircraft. "We resolutely oppose any country developing any kind of military relationship with Taiwan," ministry spokesman Yang Yujun told a monthly news briefing. 'This position is clear and consistent."