China, U.S. pledge $3 billion each to fight climate change

China is willing to join hands with the USA to improve their relationship and push it forward on the right track, Chinese President Xi Jinping said here on Friday.

Xi, paying his first state visit to the United States, made the remarks at a joint press conference with U.S. president Barack Obama at the White House.

The United States and China have reached a historic agreement on cyber security, pledging that neither would conduct cyber espionage against the other country.

Obama and Xi, sometimes sparring partners, agreed to work together to end cyber crimes and espionage during a press conference at the White House [Xinhua]. Following the ceremonial formal welcoming, the two men sat down to negotiations.

Climate change is one of the few areas where bilateral cooperation has proceeded smoothly in recent months, largely because Beijing has struggled to contain heavy air, water and soil pollution that has destroyed farmland, sent cancer rates soaring and left its cities cloaked in dense smog.

Top polluter China has pledged a United States dollars 3 billion fund to help developing countries combat climate change and announced plans to launch a national emission trading system which will set a price on greenhouse pollution in 2017. Cap and trade systems are designed to limit carbon emissions by creating markets for firms to buy and sell the right to produce specific amounts of emissions.

In fact, while President Obama was making much of this anti-hacking pact he had signed with President Xi, he was also threatening to file complaints and take steps to impose economic sanctions against China if it does not follow its words with actions.

But disagreements on other issues still loomed.

Many observers had hoped Obama would pressure Xi about the growing number of attacks from China, and there had been speculation about possible sanctions or even a cyber security treaty.

The world’s two largest economies flexed their muscles with a joint agreement to increase their commitments above and beyond the breakthrough agreement the two leaders sealed in Beijing almost a year ago.

As the two leaders spoke, dozens of pro- and anti-Xi protesters gathered near the White House grounds, waving flags, beating drums and shouting slogans. “Relevant construction activities that China are undertaking in the island of South – Nansha Islands do not target or impact any country, and China does not intend to pursue militarization”, Xi said. To be credibly able to provide this leadership, both the USA and China must have a serious agreement and will to collaborate in government-sponsored surveillance and police action against cybercriminals.

And he called for worldwide disputes to be “resolved peacefully” – an implicit reference to China’s disputed territorial ambitions in the South China Sea.

But he hailed progress with China on climate change and the nuclear accord with Iran, and said both he and Mr Xi were committed to pressing ahead against the North Korean nuclear problem.

The Pentagon said on Tuesday that a Chinese jet performed an “unsafe” maneuver in front of a USA reconnaissance plane last week approximately 80 miles east of the Shandong peninsula.