U.S.-China set for new tensions as Obama, economic woes test ties: analysts

The Chinese side has shown some signs of its attitude toward the tougher Obama approach, most visibly when state TV cut his references to communism and regimes that silence dissent during his inauguration speech.

However, it has insisted co-operation is the only way forward.

Premier Wen Jiabao used the World Economic Forum in Davos, Switzerland, to send a message to the U.S. administration, saying it was “imperative for the two countries to enhance cooperation.”

“A peaceful and harmonious relationship will make both sides winners, while a confrontational one will leave both losers,” Wen said.

Separately, Hu told Obama that he hoped to “strengthen communication and coordination on macro-economic policy and firmly resist trade protectionism”.

Jia Qingguo, an international relations scholar at Peking University, said relations would likely improve as the two sides became more familiar with each other.

“The two governments need time to learn to get along (because) in the Obama administration, there are quite a few new faces,” he said.

“On both sides there's an urge to pursue dialogue.”

At the same time, signs of a thriving relationship abound. The United States last year opened its second-largest embassy in Beijing, while China's foreign ministry is headed by Yang Jiechi, a former ambassador to Washington.

It is a dialogue that has become more and more necessary with the rise of China and its growing influence on issues ranging from the North Korean and Iranian nuclear crises to climate change, all Obama priorities.

And as the global financial meltdown shows, the fates of the largest and third largest economies in the world are intimately tied together.

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