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China, U.S. kick off second meeting of Strategic Economic Dialogue

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WASHINGTON -- China and the United States began a key economic dialogue on Tuesday in Washington, aiming to address outstanding issues in bilateral economic and trade relations.

In remarks prepared for the opening of U.S.-China Strategic Economic Dialogue, U.S. Treasury Secretary Henry Paulson said that an open, honest economic relationship between the two countries is "pivotal to the future of the global economy."

"The SED is a forum to manage that relationship on a long-term strategic basis, for our mutual benefit, and to work towards near-term agreements that build confidence on both sides," said Paulson, also as special envoy of U.S. President George W. Bush.

He said the U.S. was supportive of a stable and prosperous China and was not afraid of Chinese competition despite trade disputes with the Asian country.

"The purpose of this on-going dialogue is to have candid discussions and find ways to ease, rather than increase, these tensions," said the Treasure chief.

Chinese Vice Premier Wu Yi, who was also as the special envoy of Chinese President Hu Jintao, said in her opening statement that the strengthening of strategic mutual trust and building of constructive and cooperative relations between China and the U.S. serves the fundamental interests of the two peoples.

"Equal consultation, cooperation and win-win have become the overall situation and defining nature of China-U.S. relations, both being stakeholders and constructive partners," she said.

Wu also noted that she admits that the two countries still have obstacles to remove and problems, so that both sides "need to accord each other with mutual understanding and trust to resolve these problems and overcome barriers through dialogue and consultation."

She warned that attempts to politicize economic and trade issues should be resisted.

"Politicizing economic and trade issues is absolutely unacceptable, since it is of no help but will make the situation more complicated, harm bilateral economic and trade relations or even cause serious negative impact on the progress of overall China-U.S. ties," said the Chinese leader.

"We should not easily blame the other side for one's own domestic problems, or even force one's own views by imposing pressure on and confronting with the other," she said. "Against the ever deepened economic globalization today, confrontation does no good at all to problem solving, and pressure imposition can only make the situation more complex."

This year is the 35th anniversary of former President Richard Nixon's historic visit to China. Former Secretary of State Henry Kissinger told the assembled delegates that now, as then, the peace of the world and the progress of the world required close cooperation between the two peoples of the United States and China.

"Our two countries can set a standard and a framework for the rest of the globalized community," he said.

The second meeting of U.S.-China Strategic Economic Dialogue, co-chaired by Wu and Paulson, was also attended by dozens of ministers from the two countries.

China and the U.S. held their first strategic economic dialogue last December. The dialogue mechanism has already become an important platform for the two nations to discuss long-term strategic and economic issues.

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