Fri, December 05, 2008
China and the United States completed Friday their last high-level economic meeting under the Bush administration with vows of 20 billion dollars of trade financing to boost commerce in a time of crisis.
But amid vows to cooperate on the worst global storm in decades, it was unclear if the Strategic Economic Dialogue would continue after president-elect Barack Obama assumes office in January.
"With regard to the financial crisis, the two sides worked together very well through this process," said Treasury Secretary Henry Paulson, who headed the US delegation at the talks.
"We are really focused on stabilising the (financial) system and protecting investment," he told reporters at the end of two days of talks.
Freeing up trade to boost weakening global growth was one of the main themes in the meetings at the Diaoyutai State Guest House in western Beijing.
"Both sides believe that in the face of the growing challenges posed by the crisis, we must fully oppose all forms of protectionism," Vice Premier Wang Qishan, the head of the Chinese team, told reporters.
"We stand ready to work actively with other countries in the world to promote the early resumption of the WTO Doha round of negotiations so as to... promote prosperity and growth of the world economy and trade."
The last round of Doha trade talks collapsed in July when the United States and India clashed over measures to protect poor farmers against import surges.
Paulson earlier Friday said the United States and China would make 20 billion dollars available in trade financing to boost commerce amid the global slowdown.
"To support trade flows during this period of financial turmoil the US and China announced today that our two export-import banks will make available an additional 20 billion dollars for trade finance, particularly for creditworthy importers in developing economies," he said.
China's ability to maintain domestic growth, and help lift the global economy in this manner, was also a major topic during the discussions.
"If there is a big economic crisis in China, the confidence of the global economy will be hurt," said the People's Daily in an editorial in its overseas edition.
"In this situation, the fact that China and the United States sit down and exchange views... not only benefits the two countries, but benefits all countries in the world."
But amid the pledges to support the world economy, an eternal bone of contention -- the value of the Chinese yuan -- again moved up the agenda.
"While recognising that currency movements will be uneven over shorter periods, the United States encouraged China to continue, and accelerate, (yuan) appreciation and flexibility," the US side said in a statement.
Chinese Commerce Minister Chen Deming said Thursday he believed the yuan would remain if stable "if there's no major change to the overall international economic environment, and if everybody continues to work together."
The Strategic Economic Dialogue has taken place since 2006 and is the highest-level forum for exchange between economic policy-makers of the two nations.
This round is the last under President George W. Bush's administration. His successor, Barack Obama, has not indicated whether the talks will continue on his watch.
"We look forward to continuing this candid and pragmatic dialogue with a new administration in the United States," Vice Premier Wang told the briefing Friday.
Paulson described similar sentiments: "I have great confidence that when any initiative shows and demonstrates success over a period of time, that it is generally continued."
(Agencies)
