Nightly News   |  June 07, 2013

Obama’s high-stakes meeting with China’s president

President Xi Jinping is already being protested by demonstrators against China’s crackdown on human rights – but the biggest issue dividing China and the U.S. may be cyber and intellectual property theft. NBC’s Andrea Mitchell reports.

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>>> president obama is in california tonight for a meeting with his chinese counterpart xi jinping who took office just last november. the men had a lot to talk about and they are dispensing with some of the usual formalities. part of the focus has been on their wives. one of them is there. the other is not. our report from chief foreign affairs correspondent andrea mitchell .

>> reporter: the white house hopes this is a different kind of chinese leader. relaxed, self-confident enough to agree to an unscripted two-day summit. not the usual stilted state visit . and president xi is bringing his wife, a celebrity in her own right. a glamorous singer with a hard line pass. china purged this picture from the internet of her in uniform singing for the troops after the crack down at tiananmen in 1989 . the goal, getting to know one another. the setting relaxed. a luxurious 200 acre estate in california built by walter anenberg and his wife lenore. this is no rustic camp david . a golf course , priceless art including chinese artifacts spanning 13 centuries. once a storied winter retreat for ro nald reagan and his friends. but michelle obama is staying home to finish the school year with the girls though some see it as a snub.

>> it's potentially a missed opportunity. pung is seen as an empowering figure. likewise michelle obama here.

>> reporter: she is at the hyatt reportedly worried about eaves dropping .

>> today the biggest problem could be cyber and intellectual property theft which costs us roughly $300 billion per year.

>> reporter: the president wants china to own up to cyberattacks coming from its territory including this military building in shanghai. though mr. obama's argument could be undercut about leaks about america's eaves dropping on foreigners. another sign that it will take a lot more than one weekend in a fairy tale setting to fix all that's wrong between the u.s. and china. andrea mitchell , nbc news, washington.