SED succeeds in defusing China-US disputes: Paulson

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BEIJING, Aug 2 (CEIS): US Treasury Secretary Henry Paulson said here yesterday that the United States and China should work together to make the China-US strategic economic dialogue (SED) "a success" as a bridge in bilateral economic relations and resolving the trade disputes.
Paulson made the remarks while meeting Chinese President Hu Jintao, according to a statement released by the Chinese Foreign Ministry.
He said that he would work closely with Chinese Vice Premier Wu Yi to narrow differences and address bilateral trade issues through the mechanism.
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.
However, the dialogue has been criticised by some US legislators for not delivering enough tangible results.
Paulson told Hu the SED was "in a key stage of development", according to the statement, saying its success would be conducive to the common interests of the two nations.
The projects or programmes yielded from the first two rounds of dialogue should be "thoroughly implemented", Hu urged, proposing both sides should come out with new ideas and new approaches to cement cooperation, address the challenges and improve trade relations, the statement said.
Hu said sound and stable bilateral economic relations were in the fundamental interests of both nations and peoples, and served "a need" to maintain a stable growth of the world economy.
Paulson's visit, his second this year since a short tour in March, was widely regarded as paving the way for the third SED meeting in December in Beijing. He came to discuss pressing issues, such as the trade imbalance, the Chinese currency exchange rate, food safety, energy efficiency and environmental protection, with Chinese officials.
Just days before his trip, the US Senate Financial Committee overwhelmingly passed a bill that allowed the US government to use a wide array of measures to force other countries to adopt more market-oriented currency policies. The bill would require the Treasury Department to identify countries with "fundamentally misaligned" currencies.
The Treasury refused to cite China as a currency manipulator in its semiannual report to Congress in June.
"I will not say anything other than the Treasury's view that legislation is not the proper way to proceed and deal with the currency issue," Paulson said after he met with Chinese Vice Premier Wu Yi Tuesday.
Paulson was reported by US media to have 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.
The letter, dated July 30 and released right after he met with Wu, said that since the SED was launched last year, the Chinese currency's rate of appreciation had tripled, and warned that either of the bills being considered would undo this progress.
"I believe it is much more productive to have bilateral talks and engagement," Paulson told Xinhua.
Meanwhile, Washington report says: The Bush administration announced yesterday that the 18th US-China Joint Commission on Commerce and Trade (JCCT) will be held in December in Beijing.
"I look forward to this important JCCT meeting. We have a number of trade and economic issues to address. While US exports to China are growing, many barriers remain," said US Commerce Secretary Carlos M Gutierrez.
"We will be working with our counterparts in China to continue delivering results for American workers, businesses, farmers and ranchers, and expanding access to the Chinese market," he added.
"The JCCT is a vital forum that deals with the nuts-and-bolts of trade," said US Trade Representative Susan C Schwab. "It has helped the US and China address and resolve challenging trade issues in the past, and we are looking for it to do so this year as well."
Commenced in 1983, this 18th plenary JCCT session will be co-chaired on the US side by Commerce Secretary Gutierrez and USTR Schwab and on the Chinese side by Vice Premier Wu Yi, according to a statement released by US Trade Representative Office.
Secretary of Agriculture Mike Johanns will also participate in the JCCT, the statement added.
The JCCT, the bilateral venue for the US and China to address trade and market access issues, has over a dozen working groups and sub-groups that meet throughout the year to work on a range of trade and investment issues.