Market forces must guide industrial capacity cut: finance minister

STRUCTURAL REFORM CRUCIAL

As the global economy grapples with a weak recovery, macro-policy coordination is high on the dialogue's agenda.

Although the US economy is seeing stronger recovery momentum, its investment engine remains weak and trade and fiscal deficits are high. Meanwhile, the Chinese economy is operating stably, but its fundamental problems have not been sorted out, Lou said, reaffirming the need for both countries to implement structural reforms.

He said China is willing to work alongside the international community to strengthen policy coordination and boost growth potential through structural reform and technology innovation.

"China will adhere to a proactive fiscal policy and prudent monetary policy to provide a stable environment for structural reform," he added.

While the Chinese side pledged persistent policy making, the US government vowed greater transparency and to make policy-setting more forward-looking to lessen the negative spillover to other countries.

The United States also agreed to take actions to boost productivity and investment, raise saving rates as well as labor participation rates, and achieve sustainable fiscal discipline in the medium-term.