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BEIJING, Aug. 2 - U.S. Treasury1 Secretary Henry Paulson said here Wednesday that the United States and China should work together to make the China-U.S. Strategic Economic Dialogue "a success" as a bridge in bilateral2 economic relations and resolving the trade disputes.
Paulson made the remarks while meeting Chinese President Hu Jintao, according to a statement released by the Chinese Foreign Ministry3. He said that he would work closely with Chinese Vice4 Premier5 Wu Yi to narrow differences and address bilateral trade issues through the mechanism6. Launched in September 2006, the biannual7 economic strategic dialogue between Beijing and Washington serves as a platform to discuss long-term, strategic and comprehensive issues in the bilateral trade relationship. However, the dialogue has been criticized by some U.S. legislators for not delivering enough tangible8 results. Paulson told Hu the SED was "in a key stage of development", according to the statement, saying its success would be conducive9 to the common interests of the two nations. The projects or programs yielded from the first two rounds of dialogue should be "thoroughly10 implemented11", Hu urged, proposing both sides should come out with new ideas and new approaches to cement cooperation, address the challenges and improve trade relations, the statement said. Hu said sound and stable bilateral economic relations were in the fundamental interests of both nations and peoples, and served "a need" to maintain a stable growth of the world economy. Paulson's visit, his second this year since a short tour in March, was widely regarded as paving the way for the third SED meeting in December in Beijing. He came to discuss pressing issues, such as the trade imbalance, the Chinese currency exchange rate, food safety, energy efficiency and environmental protection, with Chinese officials. Just days before his trip, the U.S. Senate Financial Committee overwhelmingly passed a bill that allowed the U.S. government to use a wide array of measures to force other countries to adopt more market-oriented currency policies. The bill would require the Treasury Department to identify countries with "fundamentally misaligned" currencies. The Treasury refused to cite China as a currency manipulator in its semiannual report to Congress in June. "I will not say anything other than the Treasury's view that legislation is not the proper way to proceed and deal with the currency issue," Paulson said after he met with Chinese Vice Premier Wu Yi on Tuesday. Paulson was reported by U.S. media to have joined Commerce Secretary Carlos Gutierrez and U.S. Trade Representative Susan Schwab in sending a letter to Senate Majority Leader Harry12 Reid to oppose both pieces of legislation. The letter, dated July 30 and released right after he met with Wu, said that since the SED was launched last year, the Chinese currency's rate of appreciation13 had tripled, and warned that either of the bills being considered would undo14 this progress. "I believe it is much more productive to have bilateral talks and engagement," Paulson told Xinhua. After arriving in Beijing on Sunday afternoon, Paulson traveled to Xining, capital of northwest China's Qinghai Province, for an "environmental tour" that included environmental protection programs and rural households in remote areas on the Qinghai-Tibet Plateau. In Beijing, Paulson also met with the heads of China's top economic planning body, central bank, forestry15 department, regulatory commissions of banking16 and securities before he wrapped up the tour on Wednesday evening.
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