China is urging the United States to stabilize its economy, as the two nations begin a new round high-level bilateral economic talks in Beijing.
During his opening remarks Thursday at the Strategic Economic Dialogue, Vice-Premier Wang Qishan also called on the United States to protect China's American assets. China holds two trillion dollars of currency reserves in U.S. Treasury bonds.
VIce Premier Wang says China is taking steps to boost domestic demand and transform its economic growth model. It recently announced a 586 billion dollar stimulus package, focused mainly on the construction of public works projects to create more jobs.
U.S. Treasury Secretary Henry Paulson is leading the Washington's delegation at the two day meeting. In his remarks, Paulson assured China that Washington would work together with Beijing to strengthen the global system.
Neither leaders mentioned a dispute over the Chinese currency in their opening remarks.
On Tuesday, Paulson urged China to allow its currency to rise further in value against the dollar. Paulson noted the yuan has risen more than 20 percent against the dollar since 2005.
He said a stronger yuan should be part of reforms that would allow China to rely more on domestic demand and less on exports to drive economic growth.
This week's meeting is the fifth Strategic Economic Dialogue session between the two sides. The twice-a-year meeting was started by the Bush administration in 2006 to discuss economic matters between the U.S. and China.
During their talks, the two sides are expected to reach agreements on such issues as energy, environmental protection and transportation.