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Paulson: Sino-US relations 'globally important'

By Wang Zhenghua (China Daily)
Updated: 2007-03-09 08:30

Governor Zhou Xiaochuan (left) of the People's Bank of China shakes hands with US Treasury Secretary Henry Paulson at the Shanghai Futures Exchange yesterday.

SHANGHAI: With China's double-digit growth leading the country to become a leader of the global economy, the Sino-US relationship has become more important than ever before.

This was the main theme of US Treasury Secretary Henry Paulson's address to the Shanghai Futures Exchange yesterday. Paulson's speech was a highlight of his two-day tour of China, which is intended to pave the way for the second round of Sino-US strategic economic dialogue in Washington in May.

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"We welcome China's growth and integration into the world economy, as it benefits the Chinese people and the people of the world," Paulson said to an audience of about 300, including central bank Governor Zhou Xiaochuan, other government officials, scholars and business representatives.

"Because of its size and its role in world markets, China is already a global economic leader and deserves to be recognized as a leader," he added.

During his third visit to the rising Asian power in his current position, Paulson said he has focused intensely on China from the day he became treasury secretary, because the economic relationship between the two powers is an important part of their overall relationship.

"The economic relations between our two nations are vital to the future of the global economy, and I believe we share many of the same goals. The policies of openness and market principles that the United States advocates are similar to those that China's leaders have embraced to bring balanced, harmonious growth to your nation," Paulson said.

Over the last five years, the United States and China accounted for more than 50 percent of global growth, and China's continued economic success is not only vitally important to the people of China, but also to the rest of the world, he said.

Paulson, who arrived in Shanghai after a brief visit to Beijing for a short meeting with Vice-Premier Wu Yi on Wednesday, also hailed the progress made in China's banking, securities and insurance sectors.

"You have recognized that a deeper, more sophisticated and more competitive financial sector will help you to achieve your aspirations of harmonious growth. And already, you have made significant strides. I have seen your progress on a first-hand basis," he said.

For instance, the country has recapitalized four of its top five State-owned banks. Even more importantly, it has invited strategic investors and completed initial public offerings, which bring enhanced corporate governance, external audits and new public shareholders.

"As someone who in my former job participated in, and hopefully positively contributed to, this process, I was highly impressed by the speed with which you move to execute a plan once your leaders have made a decision," he said.

(China Daily 03/09/2007 page13)