Barack Obama and Chinese premier laud growing co-operation

Barack Obama raised differences over Tibet, human rights, trade and Iran in a low-key joint appearance with the Chinese president, Hu Jintao, in Beijing today.

While Hu made a pointed reference to trade disputes, the overall focus was on collaboration, with the two men mostly lauding the increased co-operation between the countries on issues such as the economy, climate change and non-proliferation.

The event had been described as a press conference, but no questions were allowed. Instead, Hu and then Obama delivered brief prepared comments on their two-and-a-half-hour talks.

"The relationship between our two nations goes far beyond any single issue," said the US president.

Hu described the morning's meeting as "candid, constructive and very fruitful".

But he said: "I stressed to President Obama that under current circumstances our two countries need to oppose and reject protectionism in all its manifestations in an even stronger stand."

Obama said China's partnership had been critical to attempts to end the recession, but stressed again the importance of balanced economic growth and pointedly praised his hosts' commitment "to move towards a more market-oriented exchange rate over time".

China is angry at US steel pipe and tyre tariffs. It is also concerned that the US deficit could threaten its vast dollar holdings as the largest foreign lender to America.

The US wants China to allow further appreciation of the renminbi to shift the huge trade imbalance.

The Chinese president also called on the US to respect China's "core interests" – a reference to Taiwan and Tibet.

Obama said that US accepted that Tibet was part of China, but went on to push for the early resumption of talks between China and the Dalai Lama.

The US president also said the governments would resume their on-again, off-again human rights dialogue early next year – a small step forward. He said he had spoken to his counterpart "about Americans' bedrock belief that all men and women possess certain fundamental human rights" and stressed that these applied to "religious and ethnic minorities".

Obama said he thanked Hu for Chinese support for non-proliferation and the elimination of North Korea's nuclear programme. The two countries are focusing on restarting the collapsed six-party talks.

But their differences on Iran were obvious.

"Iran has an opportunity to present and demonstrate its peaceful intentions, but if it fails to take this opportunity, there will be consequences," the US president warned, while Hu said only that the issue should be resolved through negotiations. Iran is a long-standing ally of China.

On climate change, Obama said the two countries were looking for a comprehensive deal at Copenhagen which would "rally the world". He added that it should be an agreement that has "immediate operational effect," not just a political declaration. But it was not immediately clear what form this might take.

Obama left the event to embark on a tour of the Forbidden City. Hu will host a state banquet in his honour tonight.