US Secretary of Treasury:US-China Economic Relationship Largely Complementary
Prior to Chinese President Hu Jintao's state visit to the United States, US Secretary of the Treasury Timothy Geithner said in Washington earlier this week that the economic relationship between the United States and China has a tremendous amount of mutual benefit, and is largely a complementary relationship. Geithner also says the US would like to see China work on issues that are of concern in the US, and he's confident that such changes will take place. Our Washington correspondent Shanshan has the story.
Geithner says the state visit by President Hu Jintao takes place at a time of important transition for the world economy, the Chinese economy and the US economy. While many developed economies are still confronted with the challenge of rebuilding after crisis, many emerging economies are at the early state of what should be a long period of very rapid economic growth. These dynamics will fundamentally change the balance in the world economy.
Geithner says the economic relationship between the United States and China provides tremendous benefits to both nations.
"China needs the United States, but the United States also benefits very substantially from our rapidly expanding economic relationship with China. The benefits of this relationship are hard to capture in any one statistic, but remember this. The US is on track to export more than 100 billion dollars of goods and services to China this year. Our exports to China are growing at twice the rate of our exports to the rest of the world. These exports are supporting hundreds of thousands of jobs across the nation in all sectors."
Secretary Geithner also said that while China presents enormous economic opportunities for the US and for the world, its size, the speed of its ascent and its policies are a growing source of concern in the US. In this context, he outlines the two principle objectives of the US economic relationship within China.
"The first is to expand opportunities for the US companies to export and sell to the Chinese market. Our second objective is to promote reforms that will reduce China reliance on export led growth and encourages a shift to domestic consumption and investment."
Geithner says the US hopes China will do more to address their concerns, from the exchange rate to the treatment of intellectual property. He says the US understands China's objectives including more access to US high technology products and greater investment opportunities in the US. Geithner says the United States is willing to make progress on these issues, but it needs to see more reforms from China first.
Geithner compliments China on running a very effective and ambitious course of financial reforms over the last thirty years, which gives him confidence that further changes will be made.
"China's rise offers us the opportunity of dramatic growth in demand for things Americans create and produce. But it also will force us to raise our game. We should welcome both the opportunity and the challenge."
SS, CRI news, Washington.