China, US kick off second meeting of Strategic Economic Dialogue

WATCH VIDEO

Source: CCTV.com | 05-23-2007 08:05

Chinese Vice Premier Wu Yi (R), special envoy of Chinese President Hu Jintao, shakes hands with U.S. Treasury Secretary Henry Paulson, special envoy of US President Bush, during the opening of the second meeting of the China-U.S. Strategic Economic Dialogue in Washington May 22, 2007. (Xinhua/Rao Aimin)

China and the United States opened a new round of high-level economic talks on Tuesday in Washington. They are addressing outstanding issues in bilateral economic and trade relations. Chief negotiators from both the Chinese and US side laid out their positions on bilateral trade during opening remarks.

In her opening remarks to the US-China Strategic Economic Dialogue, Chinese Vice Premier Wu Yi cautioned the United States against politicizing outstanding economic and trade issues.

Wu Yi said, "We should conduct meticulous and detailed work and maximally increase the reciprocity of our bilateral economic and trade ties. Problems and contradictions emerging in the development of China-US economic and trade relations should be taken calmly and handled properly. Economic and trade issues can only be correctly approached and addressed according to economic law. Politicizing economic and trade issues is absolutely unacceptable."

Henry Paulson, US treasury secretary, said, "The United States is supportive of a stable and prosperous China. We are not afraid of competition. We welcome it, because competition makes us stronger. It is therefore in our interest to support China's continuing efforts to open up its economy. As I've said before, our policy disagreement are not about the direction of change, but about the pace of change."

The US delegation includes top officials from 11 Cabinet-level agencies, as well as Federal Reserve Chairman Ben Bernanke. The Chinese team includes 14 Cabinet ministers and the head of China's Central Bank, Zhou Xiaochuan.

Breakthroughs at this meeting are expected in the area of cutting tariffs on sales of American energy technology products and services in China. And also in increasing US airline passenger and cargo flights to China.

But more challenging issues, such as the US wish to speed up the pace of the rise in value of the Chinese currency over the US dollar are expected to take more time. And require more dialogue and patience on both sides. Also, more debate is anticipated over how soon Chinese financial service companies will open up more to US investment.