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US-China economic relationship mutually beneficial

(Xinhua)
Updated: 2010-05-24 13:22

WASHINGTON - The US-China economic relationship is one of mutual benefits, and the common interests of the two sides are expanding, Chinese Finance Minister Xie Xuren said on Sunday ahead of the second round of the China-US Strategic and Economic Dialogue (S&ED).

"The US-China strategic and economic dialogue in Beijing this week will have a major bearing on the sustainable and healthy development of our economic relationship," Xie said in an article published by the Washington Post on Sunday.

The two-day second round of S&ED opened in Beijing on Monday morning.

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Xie said that since the United States and China established diplomatic relations, bilateral trade volume has grown nearly 120-fold. US direct investment in China has topped 63.1 billion dollars, and China's direct investment in America has also grown rapidly, in tandem with indirect investment in Treasury bonds and other American assets.

He noted that the American and Chinese peoples benefit and entrepreneurs in both countries benefit from the bilateral economic ties.

But differences on some issues are unavoidable.

"China and the United States are in different stages of development and will be for a long time," he said.

Over recent decades, the American industrial structure has been upgraded toward high-end manufacturing and modern services, while its traditional manufacturing industry has gradually shifted to other countries.

Xie said that trade of the two sides are complementary to each other.

"If the United States can loosen its export controls on civilian high-tech products to China, its export competitiveness can be further improved. This would also help it balance trade with China," said the minister.

He noted that "Today, the common interests of our countries are expanding," adding that space for new cooperation is open in the bilateral and global spheres in at least three ways.

First, China and the United States must focus on global economic stability and recovery, which is threatened by the European sovereign debt crisis.

Second, both countries are transforming their economic development patterns. China is expanding domestic demand and pursuing scientific development.

Third, China and the United States are key stakeholders in the establishment of an equitable, open and fair international economic order.

During the second round of S&ED, US and China will exchange their views about promoting a strong recovery and more sustainable, balanced growth; promoting mutually beneficial trade and investment; financial market stability and reform; and reform of international financial architecture.