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China-US dialogue to facilitate cooperation

(Agencies)
Updated: 2009-07-26 18:41

 

US hopes China talks spur economic recovery, jobs

Washington: With the global economy mired in recession, the United States and China begin talks Monday to seek a solution together despite tensions over currencies, the U.S. budget deficit and the huge U.S. trade gap with China.

Ultimately, how well the U.S. efforts succeed could help determine how fast the economy recovers and how many U.S. jobs might be created once it does.

Other issues, such as climate control and the nuclear issues on the Korean Peninsula, also will command attention. Few expect the talks to bridge the sharp differences between Beijing and Washington. But both governments want to use the occasion to help build a less confrontational relationship.

The Obama administration intends to remain focused on the trade gap. It plans to stress at the talks Monday and Tuesday that China can't rely on U.S. consumers to pull the global economy out of recession this time. In part, that's because U.S. household savings rates are rising, shrinking consumer spending in this country.

"Perhaps the most important message we are going to have for the Chinese is that there has been a fundamental change in the U.S. economy," said a senior administration official, who briefed reporters on the meetings under rules that did not permit use of his name.

"The U.S. economy is going to recover, but it is going to be a different type of recovery than what the Chinese have seen in the past." For the United States, suffering from a 9.5 percent unemployment rate, the ultimate goal is to help put more Americans to work.

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