Vice Premier Wang Qishan expressed in the fifth Strategic Economic Dialogue in Beijing that China was contributing to global stability by keeping its own economy growing strongly.
China promised more currency reforms to ease trade tensions but told the United States to get its own economy in order as the two countries opened high-level talks yesterday amid a global financial crisis.
The chief US envoy, Treasury Secretary Henry Paulson, said engagement between China and the United States has helped in managing the crisis.
Both sides stressed the importance of cooperation to combat a potential rise in trade protectionism.
The two-day meeting was not expected to produce breakthroughs on trade or other sensitive issues.
The two sides signed a pact yesterday to cooperate in financing for projects to improve energy efficiency and were due to work today on an investment treaty.
Speaking earlier as Paulson listened, Wang appealed to Washington to “take the necessary measures to stabilize the economy and financial markets, as well as to guarantee the safety of China’s assets and investments in the United States.”
Wang did not elaborate, but China owns USD585 billion in Treasury debt that has helped finance US budget deficits, and a weak dollar and financial turmoil have fueled Chinese anxiety about such investments. US officials said the Chinese side promised more currency reforms.
The United States is not threatened by the fact that China and other countries are big investors in U.S. securities, U.S. Treasury Secretary Henry Paulson said on Friday.
In an interview after the conclusion of high-level Sino-American talks, he added that there was strong support in China and elsewhere for U.S. government agency debt. Read the rest of this entry »
China and the U.S. pledged $20 billion to fund trade and agreed to deepen financial ties, stepping up efforts to counter the credit crisis in their final economic talks before President-elect Barack Obama takes office.
The U.S. agreed to speed up approvals for Chinese financial institutions investing in the country, the nations said in a joint statement as the Strategic Economic Dialogue ended in Beijing today. China said it would widen access to its bond market and ease borrowing limits for foreign banks. Read the rest of this entry »