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Obama promises tougher stance on trade with China

US President Barack Obama promised on Wednesday to get tougher with China on enforcing trade rules, stepping up the tone amid rising friction between the two powers over Taiwan and Tibet.

Obama also hinted that he would take Beijing to task over the strength of its yuan currency, responding to growing restlessness in the US Congress over Chinese monetary policy as the US economy charts an uncertain recovery.

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Ex-KMT legislator Diane Lee receives two-year sentence

Taipei District Court judges yesterday found former Chinese Nationalist Party (KMT) legislator Diane Lee (李慶安) guilty of fraud and forgery over her possession of dual citizenship and sentenced her to two years in prison.

Lee was convicted of four counts of fraud in connection to her US citizenship. An original four-year sentence was commuted to two years.

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Newsflash

A senior US senator said on Wednesday that US arms sales to Taiwan were hurting closer ties with China and asked US Secretary of Defense Robert Gates what Beijing would have to do for the Pentagon to reconsider the transfers.

Senate Intelligence Committee Chairman Dianne Feinstein told Gates that Chinese leaders had offered to reposition at least some of their military forces opposite Taiwan. An aide said she was referring to an offer that was made in the past and was no longer on the table.