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Strategic economic dialogue 'is a chance to clear the air'

By Qin Jize and Li Xing (China Daily)
Updated: 2006-12-15 08:45

China sees the first Sino-US strategic economic dialogue as an opportunity to correct misunderstandings between the two sides, Vice-Premier Wu Yi said yesterday at the start of the talks.

"We have had the genuine feeling that some American friends not only have a limited knowledge of, but harbour much misunderstanding about, the reality in China," Wu told US Treasury Secretary Henry Paulson, who led the American delegation.

"The dialogue is conducive to enhancing trust and dispelling suspicion to strengthen the dialogue between China and the United States in the economic field," Wu said.

Led by Wu and Paulson, more than 20 senior policy makers from Beijing and Washington started the two-day meeting in the Great Hall of the People.

In her keynote speech, Wu pledged that China would continue reforms and broaden the level of opening-up by improving the legal and policy system and strengthening protection of intellectual property rights.

She elaborated on China's adherence to peaceful development, reform and opening-up.
"China's development will not pose any threat; it offers opportunities to the world," Wu said.

She said China is rapidly increasing imports to offset the trade surplus with the US and strive for a trade balance.

Paulson said he agreed with Wu that the US needs to better understand China's drive to reform its economy.

"But having said that, there's certain things that there's plenty of understanding on," he said after the first day of talks.

"There's no lack of understanding about currency flexibility or intellectual property and those kinds of issues."

While describing the talks as "productive and informative interchanges," he said it was not reasonable to expect that, after only two days of talks, concrete agreements would be announced.

"It wouldn't be much of a dialogue if you could come in and, in two days, sit down and announce major breakthroughs," he said.

"The kinds of issues we are working on are ones that are very fundamental and very long-term," the US treasury chief said.

Paulson said that when the talks wind up today, they might be able to set out "work plans" to move forward on resolving some of the economic issues that each sees as important.

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