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Fiscal talks under way, Obama heads to SE Asia

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"That's why countries are flirting with this notion that maybe China has it right: State capitalism plus keeping your people in line," he recently told the World Affairs Councils of America. "That is very destructive."

But China also has problems with corruption and a sluggish economy.

"Burma is sending a powerful signal that people are rejecting the notion that an authoritarian model is the key to development," Rhodes said.

Still, the precarious nature of the budget negotiations is not lost on Asian countries and Obama will likely find himself on the sidelines offering reassurances to other leaders that the U.S. will not plunge over a fiscal cliff.

"Some, particularly allies, will worry about the impact on defense spending at a time when Chinese power is rising," said Michael Green, a former Asia adviser to Bush who now is a senior vice president at the Center for Strategic and International Studies, a foreign policy think tank.

Telegraphing Obama's response to that concern, White House national security adviser Tom Donilon conceded that "after a decade of war ... there will be reductions in the U.S. defense budget."

But, he added: "Guided by our new defense strategy, our defense spending program will continue to support our key priorities, including our presence and missions in Asia."

No doubt, Obama also will be dogged by personnel matters back home. His CIA director, David Petraeus, abruptly resigned after acknowledging an extramarital affair. The identity of the next spy chief is no minor matter to the Chinese, but also to Asian allies.

During the brief stop Monday in Myanmar, Obama will meet with opposition leader Aung San Suu Kyi and President Thein Sein, and deliver an address in which he will call for continued political reforms in the country.

Myanmar's democratization has led to rare bipartisanship in the U.S. capital. Republican Senate Minority Leader Mitch McConnell of Kentucky, who has had a longstanding interest in the Asian country, commended Obama for scheduling the trip.

"I think it's an important step for him to take," McConnell said.

In Cambodia, also a first visit for a sitting U.S. president, Obama will participate in the East Asia Summit, which includes the 10-member Association of Southeast Asian Nations and eight other nations: the United States, China, Japan, South Korea, India, Russia, Australia and New Zealand.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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