Strong Chinese-US economic ties benefit both countries: Paulson

CHICAGO - A former US treasury secretary said Thursday that enhanced Sino-US economic relations would benefit both countries.

Henry Paulson, who headed the treasury department from 2006 to 2009, made the remarks while addressing a forum convened to discuss a study entitled "US-China 2022: Economic Relations in the Next 10 Years."

Paulson described the China-American relationship as the world's most important, with the economic ties as its cornerstone

"The cornerstone of this relationship is an economic relationship, which has benefited both sides and has enormous potential to do so in the future. The key is to build on shared interests while seeking to resolve differences."

The present is a critical moment because both the US and China are at crossroads for economic reforms that are badly needed, Paulson said.

"The good news is that both countries are focusing on rebalancing, and cooperation is desirable, and I am urging great cooperation, each rebalancing for self-interest reasons would in any case put us each in a better place," he said.

If China succeeds, as the study points out, in increasing consumption and completing its transition to a more sustainable growth model, it will continue to provide new markets for US products and bring opportunities for American companies operating in China, Paulson said.