BEIJING -- China's top banking regulator issued a sharp critique of U.S. financial management only hours before President Barack Obama commenced his first visit to the Asian giant, highlighting economic and trade tensions that threaten to overshadow the trip.

Liu Mingkang, chairman of the China Banking Regulatory Commission, said that a weak U.S. dollar and low U.S. interest rates had led to "massive speculation" that was inflating asset bubbles around the world. It has created "unavoidable risks for the recovery of the global economy, especially emerging economies," Liu said. 

The situation is "seriously impacting global asset prices and encouraging speculation in stock and property markets."

His comments signaled that Obama -- on the third leg of a four-country Asian tour -- can expect blunt talk from Chinese leaders on the economy. The issue could complicate his broad agenda in China that also includes efforts to extract new commitments on climate change and to encourage them to take a more active role to defuse nuclear threats in Iran and North Korea.

Before heading to China, Obama underscored the urgency of his agenda on Iran by joining Russian President Dmitry Medvedev in warning Tehran that "we are now running out of time."

The trip has already had some hiccups. Wrangling between the administration and Beijing over Obama's town hall meeting with university students in Shanghai on Monday was intense, with China wanting to screen the audience and its questions, and the U.S. wanting a freer exchange.

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