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Vice-Premier: Effective mechanism has strengthened ties

(China Daily)
Updated: 2008-12-04 08:40

Editor's note: Vice-Premier Wang Qishan wrote an article on the fifth China-United States Strategic Economic Dialogue in the Wall Street Journal Asia yesterday. Below is the full text of the article.

It is gratifying that the fifth China-United States Strategic Economic Dialogue (SED) will be held in Beijing when the two countries are about to celebrate the 30th anniversary of their diplomatic ties.

It is an event which presents new historic opportunities for the growth of bilateral relations. Under the theme of "Building Blocks for an Enduring China-US Economic Partnership," the two sides will have in-depth discussions on overarching, strategic and long-term issues such as macroeconomic policies, cooperation in energy and the environment, the promotion of open trade and investment, and international economic cooperation, with a view to raising China-US economic ties and even overall relations to a new high.

The SED was introduced two years ago at the joint initiative of President Hu Jintao and President George W. Bush out of consideration for the strategic interests of China-US constructive and cooperative relations. Four rounds of SED have been held since then. As a result, the two sides have strengthened strategic mutual trust and expanded cooperation in various areas, with 149 outcomes.

What is particularly noteworthy is the cooperation in energy and the environment, product quality and food safety. Progress has been made in negotiations on the bilateral investment protection treaty and cooperation in intellectual property rights.

A number of sensitive and complicated issues have been resolved. In response to this global financial crisis in particular, the two sides have made full use of this dialogue mechanism as an important platform to have a timely exchange of views, step up policy coordination and work together to manage the crisis. The SED has proven beyond doubt to be an effective mechanism established with great vision.

The upcoming fifth SED is of special significance, for it takes place when the international economy and financial markets are facing unprecedented challenges due to the deepening global financial crisis.

In this dialogue, the two sides will exchange ideas and coordinate measures on how to implement the consensus reached at the recent Group of 20 Summit on Financial Markets and the World Economy, curb the spread of the financial crisis and prevent a global economic recession.

China will continue to take an active part in international cooperation in a responsible manner, oppose trade protectionism in all its forms, and call on the international community to pay close attention to and minimize the damage of the crisis on developing countries - the least-developed countries in particular - when coping with the financial crisis.

The Chinese government will continue to strengthen macroeconomic controls, adopt a proactive fiscal policy and moderately easy monetary policy to boost domestic demand, change the mode of economic growth and sustain steady and fast economic growth. We are following closely the steps taken by the US to cope with the crisis, and we hope that market confidence and the stability of the financial markets will be restored.

Since China and the US established diplomatic relations 30 years ago, two-way trade has increased by more than 120 times, making us each other's second-largest trading partner.

Our cooperation in investment, energy, the environment, finance and science and technology has kept expanding. The fast-growing economic ties and trade have not only benefited our two peoples, but also strongly boosted the stability and prosperity of the world economy.

This indisputable fact will eventually be recognized by both countries and the world at large. The growth of China-US constructive and cooperative relations is as irreversible as it is in keeping with the trend of the times. To enhance dialogue at this critical stage of our relationship, linking the past and the future will help increase mutual trust, strengthen communication and resolve disputes between our two countries.

I am confident that China and the US have the full wisdom and capacity to overcome various difficulties and challenges on the road ahead and usher in an even brighter future for China-US relations.