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China hopes US will cut budget deficit

By Bao Daozu (chinadaily.com.cn)
Updated: 2009-07-28 10:32

"We are committed to taking measures to maintain greater savings and to reducing the federal deficit to a sustainable level by 2013," he said. However, Geithner did not reveal how, specifically, the United States planned to achieve its deficit-cutting goals during the dialogue.

Both American and Chinese officials, however, agreed that the economy has begun to slowly stabilize.

"We have agreed that green shoots have emerged in the international economy and financial markets," said Zhu. However, the economic foundation is far from being sound, and the current situation remains severe, Zhu warned.

China's economy has shown solid signs of recovery, with its GDP growth picking up to 7.1 percent in the first half of this year after dipping to as low as 6.1 percent in the first quarter. The country's retail sales growth was 15 percent in the first half of this year, the highest since 1985, according to Ministry of Finance figures.

The two-day talks, which are co-chaired on the Chinese side by Vice Premier Wang Qishan and State Councilor Dai Bingguo, and the US Secretary of State Hillary Rodham Clinton and Secretary of Treasury Timothy Geithner on the US side, covered a wide array of issues, including the global economy, climate change and clean energy as well as regional security issues.

At the opening ceremony on Monday, US President Barack Obama emphasized his hope for closer cooperation between the two countries.

"I believe that we are poised to make steady progress on some of the most important issues of our times," he said. "The relationship between the United States and China will shape the 21st century."

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