BEIJING - Premier Wen Jiabao said on Friday that he is "fully confident" that the US economy will overcome its difficulties and return to prosperity.

"The prosperity and stability of the United States are important for the whole world," Wen told visiting US Vice-President Joe Biden at Zhongnanhai, the Chinese government's central compound.

Biden's visit comes on the heels of an unprecedented downgrade of the United States' credit rating earlier this month, which has created global uncertainty about the safety of dollar assets.

Wen said that Biden conveyed "very strong determination" to enhance Sino-US relations during the first three days of his visit, which began on Wednesday.

"You have clearly told the Chinese people that the United States is committed to preserving the integrity of its public debt, including its safety, liquidity and inflation-resistance, which will undoubtedly enhance investors' confidence," he said.

China remained the largest foreign holder of US debt as of the end of June, holding about $1.16 trillion in US Treasury securities.

Biden said the United States will ensure the safety of its debt not only for the sake of China, but also for US citizens, who own 85 percent of the country's total debt.

Wen said the importance of the China-US economic relationship is not simply bilateral in scope as it has global implications.

Wen urged the two countries to increase mutual trust, dispel suspicion, increase coordination, properly handle contradictions, reduce barriers and seek common prosperity.

The premier urged the United States to relax the restrictions on US high-tech exports to China and protect the legitimate interests of investors.

"China would like to work more closely with the United States in trade, finance, investment and infrastructure and boost the strong, sustainable and balanced growth of the economies of China, the United States and the world," Wen said.

Wen said China is confident about the ability of the United States to weather current difficulties, as it is the largest developed country with advanced science and technology, high-end talents and a strong economic foundation.

Wen said China appreciated the US commitment to adopt a responsible fiscal and monetary policy, curtail deficits and safeguard foreign investment.

"China is ready to increase cooperation with the United States to boost market confidence and maintain international financial stability," Wen said.

Saying that the US-China relationship is of utmost significance to both countries and the world at large, Biden reaffirmed US commitment to promoting development of the bilateral ties on all fronts and to expanding mutually-beneficial cooperation with China in all sectors.

Biden welcomed China's increased investment in the United States.

Biden called on both sides to work together to facilitate business cooperation, people-to-people exchanges and flow of commodities.

Biden also pledged to ensure the safety of China's investment in the United States and its holdings of dollar assets.

After Beijing, Biden will travel to Chengdu, capital of southwestern China's Sichuan Province.