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Washington promises better trade ties

(China Daily)
Updated: 2007-09-21 07:22

The United States will keep trying to override calls for protectionism and promote better mutual understanding with China, a senior official of the US Department of Treasury said in Beijing Thursday.

Under-Secretary for International Affairs David McCormick warned that the talk of protectionism could easily invoke national passions, hence it is important for both the US and China to keep in mind the tremendous benefits arising out of openness in foreign investment.

"When China succeeds, the United States succeeds," said McCormick in his speech, "Rebalancing the US and China Economic Relationship" at Peking University.

The US must not sacrifice long-term gains of openness by pursuing short-term and misguided responses to the challenges presented by global international markets, he said.

"We owe much of the strength and vitality of our economic relationship today to the remarkable success of China's economic development over the last three decades. No one here should have any doubt about our admiration for what China has achieved."

The US and China have accounted for more than 40 percent of total global economic growth in the past five years, and they are critically important markets for one another, he said.

He reiterated the importance of re-emerging bilateral investment is an important aspect of Sino-American economic ties.

Referring to the challenges thrown up by China's growth model on energy, employment and GDP increase, he said China's leaders are right to turn their attention now - rather than later - to reforms.

These reforms are aimed at "rebalancing economic growth" that stem more from "domestic demand, innovation, and high quality investment", he said.

McCormick praised China's efforts on "rebuilding the social safety net, addressing the causes of precautionary household saving, making education less costly and more widely available, improving environmental safeguards and building a more robust services sector".

"China and the United States need to adjust their policies to ensure vibrant economies as harmonious society, both at home and globally," he said.



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