China said to be Asia's powerhouse

BANGKOK, Thailand -- China emerged from the Asia-Pacific summit with fresh prominence as Asia's powerhouse and perhaps as a partner in a more cooperative relationship with the United States.

During the meeting of 21 leaders, Chinese President Hu Jintao resisted President Bush's pressure to ease controls on his nation's currency, and took on a big new mediator's role in both North Korea and Myanmar. Hu did, however, show support for stronger action on terrorism.

The moves underscored China's rising status as perhaps the most influential country in Asia, increasingly willing to use its economic and political power.

China's status stands in contrast to that of Japan, the biggest U.S. ally in Asia, which increasingly seemed a cautious bystander at the forum. Despite the size of its economy, Japan is struggling to climb out of an economic slump while China has seen strong growth and is aggressively pursuing trade deals in the region.

There were symbolic signs, too, of China's growing prominence.

Both Bush and Hu, who took office earlier this year in a long-planned Communist Party succession, were honored with state dinners in Thailand before the summit got under way. King Bhumiphol feted each in sumptuous style at Bangkok's Grand Palace.

Hu and Bush also were both heading to Australia later this week, with Hu addressing a joint sitting of the country's Parliament on Friday, the day after Bush.

During a rare news conference as the summit in Bangkok ended, Hu -- a leader who usually seems to strive for a low profile -- appeared confident and relaxed, mildly teasing reporters for asking multiple questions. He responded to the queries point-by-point, saying at one point that China would move ahead with political reforms, but cautiously.

Meanwhile, Bush's national security adviser, Condoleezza Rice used the term "layover" to describe the president's quick overnight stay in Tokyo before the summit. Although a senior U.S. official disputed that characterization as the president's plane drew closer to Japan, the image was in place.

On North Korea, China, which has helped broker six-party talks aimed at ending a nuclear standoff, was slated to take on a lead role under a new Bush administration proposal to engage the communist nation.

Bush promoted a plan in which five nations -- the United States, China, Russia, Japan and South Korea -- would jointly give North Korea written assurances not to attack. In exchange, the five want Pyongyang to pledge to dismantle its nuclear program. Bush aides said China would lead the effort to reach agreement among the five before approaching North Korea.

"In the end nobody can exert more influence on North Korea than China," Australian Prime Minister John Howard said. "China remains the key player."

Thai officials also announced that the Chinese were willing and ready to join other Southeast Asian nations in helping resolve an impasse between Myanmar's ruling junta and pro-democracy forces.

Despite tough criticism from the United States and other nations, Myanmar, also known as Burma, has refused to negotiate with the pro-democracy party of Aung San Suu Kyi. Suu Kyi, the 1991 Nobel Peace Prize winner has been under house arrest since Sept. 26.

China has been expanding its military ties with the region and recently signed an amity treaty with Southeast Asian nations aimed at assuaging any lingering worries over its territorial ambitions.

On Tuesday, China joined with Pakistan for a three-day naval exercise off the northeast coast of Shanghai -- the first that China has conducted with another country. Maneuvers include damage control for nuclear, biological and chemicals weapons attacks.

On economic issues, China's Hu matched calls by Bush and other Western leaders to revive world trade talks that stalled last month in Cancun, Mexico.

But while China toed the line on such broader issues, it stood firm on its currency.

Washington wants Beijing to relax restrictions that it contends undervalue the Chinese yuan. Bush -- mindful of next year's presidential election -- asserts that the policy gives China an unfair trade advantage, stealing jobs from American workers.

Hu told Bush privately that he agreed market forces should set exchange rates and that he would study ways that China could move more quickly in that direction, according to a senior Bush administration official.

But Hu told international business executives in Bangkok that for Beijing to change its policy would be "irresponsible." And, Hu boasted to the group, China's economic boom is helping not just their region, but the world overall.

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Associated Press writers Uamdao Noikorn and Daniel Lovering also contributed to this report.