The US will keep trying to override calls for protectionism and
promote better mutual understanding with China, a senior official
of the US Department of Treasury said in Beijing yesterday.
Under-Secretary for International Affairs David McCormick warned
that the talk of protectionism could easily invoke national
passions, hence it is important for both the US and China to keep
in mind the tremendous benefits arising out of openness in foreign
investment.
"When China succeeds, the United States succeeds," said
McCormick in his speech, "Rebalancing the US and China Economic
Relationship" at Peking University.
The US must not sacrifice long-term gains of openness by
pursuing short-term and misguided responses to the challenges
presented by global international markets, he said.
"We owe much of the strength and vitality of our economic
relationship today to the remarkable success of China's economic
development over the last three decades. No one here should have
any doubt about our admiration for what China has achieved."
The US and China have accounted for more than 40 percent of
total global economic growth in the past five years, and they are
critically important markets for one another, he said.
He reiterated the importance of re-emerging bilateral investment
is an important aspect of Sino-American economic ties.
Referring to the challenges thrown up by China's growth model on
energy, employment and GDP increase, he said China's leaders are
right to turn their attention now - rather than later - to
reforms.
These reforms are aimed at "rebalancing economic growth" that
stem more from "domestic demand, innovation, and high quality
investment", he said.
McCormick praised China's efforts on "rebuilding the social
safety net, addressing the causes of precautionary household
saving, making education less costly and more widely available,
improving environmental safeguards and building a more robust
services sector".
"China and the United States need to adjust their policies to
ensure vibrant economies as harmonious society, both at home and
globally," he said.
(China Daily September 21, 2007)
