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Paulson lauds China cooperation amid market turmoil
(Agencies)
Updated: 2008-10-22 08:02


US Treasury Secretary Henry M. Paulson speaks at the National Committee on United States-China Relations gala dinner in New York, October 21, 2008. [Agencies]


WASHINGTON – US Treasury Secretary Henry Paulson on Tuesday praised China's cooperation in taming global financial turmoil and urged the next US president to continue an active economic dialogue with Beijing.

In his first major speech on China in two months, Paulson said he has held useful and constructive discussions with Chinese Vice Premier Wang Qishan on the turmoil rocking global markets.

"It is clear that China accepts its responsibility as a major world economy that will work with the United States and other partners to ensure global economic stability," Paulson said in prepared remarks to the National Committee on US-China Relations in New York.

A advance copy of his remarks were released in Washington.

Paulson said the United States has demonstrated that it will "do what is necessary" to strengthen financial institutions, unlock credit markets and minimize the impact of financial instability on the broader US economy. He urged other governments to do the same.

China is feeling strains from the global turmoil as well, but was expected to continue to be an important engine for global growth, Paulson said.

The next US president should recognize this and engage China as a growth opportunity for US companies, consumers, exporters and investors, he said. "A stable prosperous and peaceful China is in the best interest of the Chinese people, the American people and the rest of the world," he said.

Paulson said he hopes whomever wins the November 4 election will build upon progress that Washington and Beijing have made during the past two years by holding high-level talks called the Strategic Economic Dialogue (SED).

"Perhaps most importantly, the SED has established a new model for communication, enabling us to address urgent issues such as turmoil in our financial markets, energy security and climate change," he said. "I hope that the next US president will expand on the SED to take US-Chinese relations to the next level."

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