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China, U.S. focus on global economic system

BEIJING: China and the U.S. started their fifth Strategic Economic Dialogue (SED) in Beijing on Thursday amid the deepening global financial crisis.

Chinese Vice-Premier Wang Qishan and U.S. Treasury Secretary Henry Paulson co-chaired the opening dialogue as special representatives of Presidents Hu Jintao and George W. Bush.

“The most pressing issue we have to deal with is coping with global financial turmoil,” said Mr. Wang before going behind closed doors. “It is imperative for us to work together to implement the consensus reached at the G-20 summit [in Washington D.C. in mid November].”

Mr. Paulson said the U.S. and China would focus on how they work together through international forums to strengthen the global economic system.

As the global crisis looms large, Mr. Wang said the priority was to restore investor confidence, restrain the crisis from spreading and avoid a global recession, with special regard for the impact that it will have on developing countries.

“The U.S. was aware that to get rid of the financial turmoil, China’s cooperation, support and help was indispensable,” said Zhou Shijian, a senior researcher with Beijing-based Tsinghua University.

“This will be the final SED meeting for me and my U.S. Cabinet colleagues, and we are committed to a strong finish,” said Mr. Paulson, a key figure in establishing the SED mechanism in 2006. He said this round would be “our most productive and cooperative sessions to date”.

“The Obama team had already been briefed on the importance of the SED,” said U.S. Assistant Secretary of State Daniel S. Sullivan. The two-day dialogue will focus on the building blocks for enduring the U.S.-China economic partnership.

Despite the global turmoil, China-U.S. trade still kept a strong momentum as bilateral trade volume rose by 13.6 per cent in the first 10 months to $281.3 billions.

The U.S. stood as China’s second largest trade partner, behind the European Union.

Mr. Wang urged the U.S. to “go all out to stabilise the economy and the financial market, and ensure the safety of China’s assets and investment in the United States.”

At six sessions, the delegates would work on strategies for managing macroeconomic risks and promoting balanced growth, investment and trade policies — including strengthening food and drug safety — respective roles in international institutions and to strengthen cooperation in energy and the environment.

The talks were expected to “reach substantive agreements,” said Mr. Paulson, describing them as “establishing short, medium, and long-term deliverables in five areas: electricity generation, transportation, clean water, clean air and protecting wetlands and natural areas.” — Xinhua

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