Opinion / China Watch
A broad dialogue with China
By Henry M. Paulson (Washington Post)
Updated: 2006-12-13 09:24
http://www.washingtonpost.com/wp-dyn/content/article/2006/12/10/AR200612100
0767.html
My highest priority as Treasury secretary is the long-term strength and
competitiveness of the U.S. economy. Managing our economic relationship
with China to ensure both nations benefit is vital to our nation's future
prosperity. A market-based economy in China, with sustainable economic
growth and full participation in rules-based international trade, is in
our best interest -- and in the interest of the Chinese people.
Since 1980 China's share of the world economy has more than quadrupled.
The United States and China now account for almost half of global
economic growth. And bilateral trade between our two nations grew by a
factor of five over the past decade. Beyond the numbers, the U.S.-China
economic relationship epitomizes both the opportunities and challenges of
globalization.
This week a delegation made up of U.S. Cabinet secretaries, agency
directors and the Federal Reserve chairman, Ben Bernanke, will
participate in the first meeting of our new Strategic Economic Dialogue
with China.
Presidents Bush and Hu Jintao launched the dialogue in September to focus
on China's successful integration into the global economy and ensure that
China continues on its market-based reform path.
My colleagues and I will meet with Chinese leaders in Beijing for
discussions in three areas: maintaining sustainable growth without large
trade imbalances; continuing to open markets to trade, competition and
investment; and improving energy security and the environment.
China is at a crucial juncture. Decisions it makes in the next few years
will have long-lasting effects around the world. The United States and
China each have a vision of how our relationship will evolve, and in many
respects our visions are similar.
We both want strong commercial ties that produce benefits for workers and
consumers in America and China. We both want China to grow in a way that
is sustainable economically and environmentally and that contributes to
global prosperity. We both want China to be a responsible stakeholder in
the global economy and in multilateral institutions.
We do have our differences. The United States believes China can do more
to reduce its trade surplus. We are encouraging China to introduce
greater flexibility for its currency, consistent with economic
fundamentals. And China needs to do more to protect intellectual property
rights.
Our goal is to advance our common interests and find solutions to issues
that strain our relationship. The United States and China are engaged in
dozens of bilateral negotiations at multiple levels. This has produced
positive outcomes, but it can be difficult to address issues that cut
across numerous sectors and areas of responsibility. The dialogue will
allow us to meet with several Chinese leaders at once and begin to
address important issues comprehensively.
For instance, transparency and respect for the rule of law are core
principles that affect all economic policy and trade issues. Commitments
to these principles are essential to China's maintaining the confidence
of international businesses and of its own investors and entrepreneurs.
Working on these principles across government ministries can enhance our
ability to reach agreement on a number of key issues that we negotiate
ministry-by-ministry.
One of the most important topics for discussion is how to help China
manage its transition to freer, more open markets, including capital
markets. Every strong, vibrant economy in the world has open, competitive
capital markets that attract investment and allocate resources to their
most productive uses. Such markets will contribute to sustained economic
growth and boost job creation in China. And strengthening and reforming
financial markets will ultimately allow the Chinese to freely float their
currency.
The Chinese government is committed to creation of a social safety net,
including health and retirement programs that will contribute to balanced
growth by giving Chinese workers and families the confidence to spend
more.
China's high saving rate is a major contributor to the country's large
global trade surplus. Increasing consumption in China will benefit U.S.
and other exporters.
Energy is an issue with far-reaching effects. Both the pattern of China's
growth -- with its heavy dependence on industry -- and low domestic
prices for energy have led to rapidly increasing energy use by China.
Unfortunately, because of technological and infrastructure challenges,
much of that energy is produced from sources that generate high levels of
pollution. This harms the air and water we all share, and creates health
problems for Chinese citizens.
Through the Strategic Economic Dialogue, we can work with China's leaders
to help it achieve more environmentally and economically sound growth and
constructive engagement with the global energy market.
This is a pivotal moment for China and for our relationship with that
country. By engaging Chinese leaders with an eye to producing long-term
benefits for our two nations, we can build a productive and prosperous
partnership for the 21st century.
The writer, Henry M. Paulson, is secretary of the Treasury.
Hot Talks
� Does the future belong to China?
� Ah all i know is that i know so little..
� How to be ready for a foreign boss
� Koizumi visits Yasukuni shrine for the 5th time
� Leave a space for ur solitude
Most Commented/Read Stories in 48 Hours
Learn Mandarin online
No comments:
Post a Comment