China offers US help to tackle financial crisis

By Cai Hong (China Daily)
Updated: 2009-03-14 08:41

WASHINGTON: China is willing to work with the United States to make next month's G20 Summit in London a success, visiting Chinese Foreign Minister Yang Jiechi told US President Barack Obama on Thursday.

Chinese Foreign Minister Yang Jiechi talks with US President Barack Obama on Thursday. [Xinhua]

"The upcoming meeting between President Hu Jintao and President Obama is of great significance to Sino-US relations and the international community's joint efforts to deal with the financial crisis," said Yang after meeting Obama at the Oval office.

China's top diplomat met Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner on Wednesday. Yang said the two countries have done some solid groundwork for the first meeting between President Hu and President Obama in London in early April.

He came to the US to prepare the meeting between the heads of the two states and compare notes with US officials on the proposals to be raised at the upcoming G20 meetings. Finance ministers from 20 countries are due to meet this weekend in London.

The meeting is expected to "chart the course for the further development of China-US relations", Yang told a luncheon meeting at the Center for Strategic and International Studies (CSIS) on Thursday.

The Chinese president has invited his US counterpart to visit the country at a mutually convenient time.

"We can hardly find an area where China-US cooperation is not needed," Yang said.

Topping the agenda for Sino-US relations at the moment is the need to tackle the international financial crisis, intensify cooperation and work together to maintain global economic and financial stability.

Yang said it was important for the London G20 Summit to boost people's confidence, and look at the positive aspects of the stimulus packages many countries have drawn up.

Along with implementing its 4-trillion yuan stimulus program, China will issue more than 5 trillion yuan in new loans this year to bolster economic growth.

Last week, the International Monetary Fund report said that only the United States, Saudi Arabia, China, Spain and Australia are moving toward meeting the IMF's target of introducing fiscal stimulus programs equivalent to 2 percent of gross domestic product this year.

The Chinese Foreign Minister said better macroeconomic policy coordination was needed to prevent the financial crisis from affecting the real economy.

"Gradual reform of international financial institutions should be undertaken to ensure the improved governance of economic and financial institutions," Yang said.

"Developing countries should have better representation or a greater say at world financial institutions."

He called for joint efforts to fight protectionism. "The United States should set a good example for others," Yang said.

He told his US audience that China and US should try their best to maintain their current level of trade.

Smooth transition

"It is time to draw a blueprint for bilateral relations in the coming years, to promote their sound and steady development," Yang said.

A smooth transition in bilateral relations has taken place since the Obama administration took office. The two countries have established a good working relationship at the top level and between various government departments.

President Hu and US President Obama talked on the phone and agreed to advance China-US relations in the new era. Obama stated that he is committed to developing a more positive, constructive relationship with China. Hillary Clinton paid a successful visit to China last month.

To keep Sino-US relations on the right track, a strategic and long-term perspective is needed, Yang said.

US President Obama stressed the importance of raising the level and frequency of US-China military exchanges in order to avoid future incidents.

During Thursday's meeting, Yang and Obama emphasized the desire of both sides to strengthen cooperation and build a positive and constructive China-US relationship.