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China, US pledge 20 bln dollar trade boost
2008-12-05
BEIJING (AFP) - China and the United States on Friday ended key economic talks with vows of 20 billion dollars of trade financing to boost commerce amid uncertainty over whether the biannual discussions would continue. As the two sides pledged to cooperate on the worst global financial crisis in decades, it was still unclear if the high-level Strategic Economic Dialogue would take place after president-elect Barack Obama took office in January. "With regard to the financial crisis, the two sides worked together very well through this process," said Treasury Secretary Henry Paulson, who headed the US delegation at the talks. "We are really focused on stabilising the (financial) system and protecting investment," he told reporters at the end of the twice-yearly talks -- a forum for exchange between economic policy-makers of the two nations set up in 2006. Freeing up trade to boost weakening global growth was one of the main themes in the meetings at the Diaoyutai State Guest House in western Beijing. "Both sides believe that in the face of the growing challenges posed by the crisis, we must fully oppose all forms of protectionism," Vice Premier Wang Qishan , the head of the Chinese team, told reporters. "We stand ready to work actively with other countries in the world to promote the early resumption of the WTO Doha round of negotiations so as to... promote prosperity and growth of the world economy and trade." The last round of Doha trade talks collapsed in July when the United States and India clashed over measures to protect poor farmers against import surges. This economic meeting was the last under President George W. Bush's administration, and China urged that the dialogue should continue under Obama, who has not yet indicated whether it will still take place on his watch. "We look forward to continuing this candid and pragmatic dialogue with a new administration in the United States," Vice Premier Wang told the briefing Friday. Paulson echoed that sentiment: "I have great confidence that when any initiative shows and demonstrates success over a period of time, that it is generally continued." The US Treasury Secretary earlier Friday said the United States and China would make 20 billion dollars available in trade financing to boost commerce amid the global slowdown. "To support trade flows during this period of financial turmoil the US and China announced today that our two export-import banks will make available an additional 20 billion dollars for trade finance, particularly for creditworthy importers in developing economies," he said. Paulson also said the United States would support China joining the Financial Stability Forum, a club of central banks and finance ministries from the world richest nations, including the United States, Japan and Germany. "It is vital to increase the representation of emerging markets in important international financial organisations," said Zhu Guangyao, Chinese assistant finance minister. But despite the air of cooperation, an eternal bone of contention -- the value of the Chinese yuan -- again moved up the agenda. "While recognising that currency movements will be uneven over shorter periods, the United States encouraged China to continue, and accelerate, (yuan) appreciation and flexibility," the US side said in a statement. The yuan's value has been a sensitive issue in the past between China and the United States, which has accused Beijing of deliberately keeping its currency low to protect the competitiveness of Chinese export prices. Chinese Commerce Minister Chen Deming said Thursday he believed the yuan would remain stable "if there's no major change to the overall international economic environment, and if everybody continues to work together." Overall, though, China's President Hu Jintao congratulated Paulson on the success of the latest round of the dialogue. "You have arrived at many agreements and achieved positive outcomes," he said.
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