China, US end vital talks with accent on positives
Source: Agencies |
May 26, 2010, Wednesday
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Print Edition
Print Edition
China and the United States pledged closer cooperation yesterday on financial regulation and the environment but did not announce any breakthroughs on a currency dispute after a high-level dialogue in Beijing.
Yuan reform is a decision for China to make by itself, US Treasury Secretary Timothy Geithner said at the end of the two-day talks.
China's policy of freezing its currency to the dollar had been a major point of contention in recent months, but both countries used their Strategic and Economic Dialogue to shine a spotlight on other trade irritants, from US export controls to a Chinese innovation program.
They also agreed on the importance of stability on the Korean Peninsula after North Korea's alleged sinking of a South Korean naval vessel.
In his closing remarks, Geithner welcomed a pledge by China's top leaders to pursue currency reform as part of a broader agenda aimed at boosting domestic consumption and helping rebalance global growth.
He said the discussions with Chinese leaders on the yuan were encouraging but wouldn't speculate when Beijing might let the yuan rise in value as American lawmakers are demanding it do.
"This is, of course, China's choice," he said.
Geithner was "as confident as I've ever been" that China would see that it is in its own interest to let the yuan resume appreciating - for example, to help curb inflation.
Zhu Guangyao, an assistant finance minister, said the US "understands" that China would reform the yuan based on its own needs.
Zhu cautioned that "external noise" on the pace of China's yuan reforms would only delay any movement.
China is the world's largest holder of US Treasuries, with US$895.2 billion.
Chinese officials, including Premier Wen Jiabao, last year prodded the Obama administration to avoid pursuing fiscal policies that could erode the value of those holdings.
Geithner told future Chinese leaders that the Obama administration was aiming to steadily lower its deficit as a percentage of national output.
"The basic strategy is to make sure that our economy is growing, then institute long-term reforms, and restore the basic discipline to the budget process that we abandoned in the previous decade," he said in a speech at the Central Party School.
"It's critically important to the US, important to the strength of recovery and to future US growth, that we act to bring our deficits down quickly and substantially as the economy strengthens."
China agreed to "modify" a policy on promoting domestic technology development that Washington and others complain might block market access and the two sides will hold more talks on it soon.
Geithner said he was hopeful that China would be "sensitive and responsive" to the concerns.
"But let me just say American companies are doing very well in China," he said. "What they're concerned about is to make sure that going forward, they're going to compete on a level playing field."
US Secretary of State Hillary Clinton said: "This round of the dialogue did not solve all our problems but did produce concrete results."
The two sides agreed to collaborate on developing China's natural gas resources.
"We believe that could well lead to new economic opportunities in both countries and a lower carbon output level," Clinton said.
The meeting brought dozens of US cabinet officials to Beijing. The dialogue is aimed at easing trade strains and promoting cooperation.
Yuan reform is a decision for China to make by itself, US Treasury Secretary Timothy Geithner said at the end of the two-day talks.
China's policy of freezing its currency to the dollar had been a major point of contention in recent months, but both countries used their Strategic and Economic Dialogue to shine a spotlight on other trade irritants, from US export controls to a Chinese innovation program.
They also agreed on the importance of stability on the Korean Peninsula after North Korea's alleged sinking of a South Korean naval vessel.
In his closing remarks, Geithner welcomed a pledge by China's top leaders to pursue currency reform as part of a broader agenda aimed at boosting domestic consumption and helping rebalance global growth.
He said the discussions with Chinese leaders on the yuan were encouraging but wouldn't speculate when Beijing might let the yuan rise in value as American lawmakers are demanding it do.
"This is, of course, China's choice," he said.
Geithner was "as confident as I've ever been" that China would see that it is in its own interest to let the yuan resume appreciating - for example, to help curb inflation.
Zhu Guangyao, an assistant finance minister, said the US "understands" that China would reform the yuan based on its own needs.
Zhu cautioned that "external noise" on the pace of China's yuan reforms would only delay any movement.
China is the world's largest holder of US Treasuries, with US$895.2 billion.
Chinese officials, including Premier Wen Jiabao, last year prodded the Obama administration to avoid pursuing fiscal policies that could erode the value of those holdings.
Geithner told future Chinese leaders that the Obama administration was aiming to steadily lower its deficit as a percentage of national output.
"The basic strategy is to make sure that our economy is growing, then institute long-term reforms, and restore the basic discipline to the budget process that we abandoned in the previous decade," he said in a speech at the Central Party School.
"It's critically important to the US, important to the strength of recovery and to future US growth, that we act to bring our deficits down quickly and substantially as the economy strengthens."
China agreed to "modify" a policy on promoting domestic technology development that Washington and others complain might block market access and the two sides will hold more talks on it soon.
Geithner said he was hopeful that China would be "sensitive and responsive" to the concerns.
"But let me just say American companies are doing very well in China," he said. "What they're concerned about is to make sure that going forward, they're going to compete on a level playing field."
US Secretary of State Hillary Clinton said: "This round of the dialogue did not solve all our problems but did produce concrete results."
The two sides agreed to collaborate on developing China's natural gas resources.
"We believe that could well lead to new economic opportunities in both countries and a lower carbon output level," Clinton said.
The meeting brought dozens of US cabinet officials to Beijing. The dialogue is aimed at easing trade strains and promoting cooperation.
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