US Treasury Secretary Henry M. Paulson said the strategic
economic dialogue (SED) not only helps lay out principles and
priorities, but also achieves tangible results.
"We have to keep making progress because we need some sign posts
to show that we are not just talking the talk but walking the
walk," Paulson said.
Like riding a bike, technically, the slower you ride, the more
likely you are going to fall, he said.
"The reason I want progress so much now is that, with the
presidential election coming up, I don't want people in the United
States to use the lack of progress as a reason for saying:
'Dialogue doesn't work, we need tougher legislation or we need to
make China an issue in the election'," Paulson said.
He said there is a certain amount of skepticism in the US about
China's intentions when it comes to trade, but the SED is the
vehicle to maintaining the good relationship and clearing
misunderstanding between the two big economies.
He emphasized that the SED is not a meeting, or a series of
meetings.
"The SED is a framework to maintain the strategic relationship;
it allows us and our counterparts in China to seek one voice at the
highest level; it is also to prioritize issues under broad context
and give us strategic direction; and it is to resolve concerns on
each side.
"We are going to define success by the ability of people on both
sides to manage the relationship over the long term, prioritize the
critical issues and achieve tangible progress on these issues. So
people on both sides can measure the progress," Paulson said.
Addressing trade imbalances without slowing down economic
growth, greater openness of markets to competition, trade and
investment, cooperation in energy and environment, and reform in
financial and non-financial services are among the areas where
Paulson expects to see some tangible results.
He also urged China to increase the flexibility of its currency,
saying it is a symbol or indication of economic reform.
Another benefit of the SED is that the United States is
listening and learning, Paulson said.
"That is one of the things I have emphasized to my colleagues
that people in the US, by nature, like to talk more than listen,
and by listening, we can learn," he said.
Vice-Premier Wu Yi can be a great teacher, he said, referring to
Wu's good personal relations with some Congress people.
During the two-day dialogue, Wu will deliver a speech in the
Congress and discuss issues that both countries are concerned
with.
She did a good job by developing good relations with some
congressmen, since they hold views that are in many ways
reflections of the views of their constituency, Paulson said.
"This is an opportunity behind closed doors, not with the press
there, not with the public, to have a dialogue (with those congress
people)."
Recognizing that both China and the US have been working on
those objectives, Paulson said he is not going to guess where the
SED is going to make the greatest progress, but it is going to make
some progress in all these areas.
In the non-financial services area, "we are talking about an
open sky agreement between China and the United States, which will
give greater access to each other's markets in terms of air cargo
and personal travel", he said.
As for the currency issue, Paulson said he does not have a
timetable for the yuan to be more market-determined, but urged more
flexibility in a short period of time.
"China is a sovereign nation, China shouldn't set its agenda or
timetable based on requests from other people," he said.
Different from 20 years ago, China now feels more pressure from
other countries, he said. "There was no tension over trade, because
there was no trade. Today there is so much, so you need to expect
that.
"The Chinese economy is increasingly big and complex, and it is
a partly planned economy and a partly market-driven economy, either
at central or provincial level, and on the path to a fully
market-driven economy," Paulson said.
"I believe the larger and the more complex the economy is, and
the more integrated into the global economy, the more important it
is to speed up the pace of reforms."
People in the US are "watching and they are going to say: 'How
quickly China is moving to open its markets to competition, goods
and services", Paulson said.
"What I want to say is: The longer you wait, the more difficult
it is because you get vested interest groups who are trying to
protect their own interests, so we should support competition
rather than certain individual competitors."
Note: This story is based on an exclusive interview with US
Treasury Secretary Henry M. Paulson by senior reporter Zhao Yining
of the 21st Century Business Herald
(China Daily May 22, 2007)