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TOKYO, Aug 19 (KUNA) -- Chinese Premier Wen Jiabao said on Friday that he
is "fully confident" that the US economy will overcome its difficulties and
return to prosperity," state-run Xinhua News Agency reported.
"The prosperity and stability of the US are important for the whole world,"
Wen told US Vice President Joe Biden in Beijing. Biden's visit comes on the
heels of an unprecedented downgrade of the US' credit rating earlier this
month, which has created global uncertainty about the safety of dollar assets.
"You have clearly told the Chinese people that the US is committed to
preserving the integrity of its public debt, including its safety, liquidity
and inflation-resistance, which will undoubtedly enhance investors' confidence,
" Wen was quoted as telling Biden.
China remained the largest foreign holder of US debt as of the end of June,
holding about USD 1.16 trillion Treasury securities. "The US will ensure the
safety of its debt not only for the sake of China, but also for US citizens,
who own 85 percent of the country's total debt," Biden told Wen, according to
Xinhua.
Wen urged the two countries to increase mutual trust, dispel suspicion,
increase coordination, properly handle contradictions, reduce barriers and
seek common prosperity. The premier also urged the US to relax the
restrictions on US high-tech exports to China and protect the legitimate
interests of investors.
Wen said China appreciated the US commitment to adopt a responsible fiscal
and monetary policy, curtail deficits and safeguard foreign investment.
"China is ready to increase cooperation with the US to boost market
confidence and maintain international financial stability," Wen said. Biden
welcomed China's increased investment in the US and pledged to ensure the
safety of China's investment and its holdings of dollar assets.
Earlier in the day, Chinese Vice President Xi Jinping also gave a vote of
confidence for the US economy while urging the country to remove trade and
investment restrictions. "We believe the US economy will achieve even greater
development as it deals with its challenges," Xi said while attending a
business conference in Beijing with Biden. Xi, who is expected to become the
ruling Communist Party leader next year, also said China will provide even
greater business opportunities for American companies in the next five years.
"It is estimated that in the next five years, China will import commodities
worth more than USD 8 trillion," said Xi.
He also urged the US to remove trade and investment restrictions and to
take action to relax limits on US' high-tech exports to China, and to create a
fair investment environment for Chinese businesses. Biden acknowledged
problems in US-China trade, calling for more candid discussions to tackle the
issues. He added that the US would like to work with China to facilitate
market access and mutual investment.
Biden, who began his six-day China visit on Wednesday, also met Chinese
President Hu Jintao. US President Barack "Obama asked me to come to Beijing to
meet you and reaffirm our absolute commitment to developing a strong, enduring
and positive relationship with China and to reaffirm our engagement with the
world in a much bigger way," Biden told Hu, according to Xinhua. This is
Biden's first visit to China after becoming US vice president in 2009. (end)
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