Dialogue helps US-China economic ties stay 'on an even keel': Paulson

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BEIJING, Aug 1 (Agencies): US Treasury Secretary Henry Paulson yesterday hailed US-China strategic economic dialogue (SED) as helpful for bilateral economic relationship to survive the hard times.
"The SED allowed us to build a strong relationship, which has been useful in keeping our economic relationship on an even keel even during the times of tension," Paulson told Xinhua in an exclusive interview yesterday evening immediately after his closed-door talk with Chinese Vice Premier Wu Yi.
Paulson said he and Wu had a "very constructive" discussion.
Paulson's remarks came in response to some US legislators' criticism that the ten-month-old bilateral dialogue has not delivered enough tangible results.
Calling the dialogue "responsible for managing the economic relations between the two sides, " Paulson said he was dealing with "the most sensitive and difficult issues in order to maintain confidence of both sides."
Launched in September 2006, the biannual economic strategic dialogue between Beijing and Washington serves as a platform to discuss long-term, strategic and comprehensive issues in the bilateral trade relationship.
Paulson said he is "very confident" the SED is a success, as "some progress would not have been achieved without the SED."
Paulson and Wu discussed how to pave way for the third SED, to be held in Beijing in December.
"Both sides agreed the SED is important and that we need to work and achieve positive outcomes for both countries." said the treasury secretary.
Paulson told Xinhua he and Wu also talked about areas such as environment and energy efficiency, consumer food safety, product safety, investment and balanced growth.
Meanwhile, Paulson has voiced his opposition to a bill that would enable Washington to punish China for its weak currency, ahead of a meeting Wednesday with Chinese President Hu Jintao.
Paulson was referring to a bill passed by the Senate Financial Committee last week that would allow the US government to push other nations to adopt more market-based currency policies or face sanctions.
The forum covers a range of economic and environmental issues but the issue at the forefront is the yuan, seen by US lawmakers as grossly undervalued to give China an unfair trade advantage.
With Paulson wrapping up his visit, the US Senate Banking Committee is also due to consider another bill that would make it harder for Treasury to avoid a finding that China and other countries have "misaligned currencies."
Paulson has joined Commerce Secretary Carlos Gutierrez and US Trade Representative Susan Schwab in sending a letter to Senate Majority Leader Harry Reid to oppose both pieces of legislation.
For China's main trade partners, the United States and the European Union, the 9.4 per cent appreciation of the yuan since 2005 has come far too slowly, even though Paulson acknowledged the gains.