Geithner's visit to China: China and the United States build new bilateral relations

The new U.S. finance minister, Timothy, May 31 formally embarked on his first trip to China after his inauguration.　　In addition to his meeting with Chinese leaders, Geithner will meet with China's Ministry of Commerce, Finance, national Development and Reform Commission, CBRC and other financial and finance officials, and make extensive contacts with representatives of the business community and academia.　　Newspaper editor Wang Pi in the context of the impact of the international financial crisis is still spreading, Geithner's visit to China further highlights the United States to deepen cooperation with China in the financial and financial fields, to join hands to deal with the crisis attention.　　China has been integrated into the world economy The Wall Street Journal reported that he was meeting with Chinese leaders to showcase an inspiring picture of the recovery in the US economy to allay China's concerns about the country's widening fiscal deficit and the state of the U.S. bond market. Geithner told Chinese media that the Federal Reserve is committed to keeping inflation low for a long time.　　The United States will take all necessary measures to ensure that the fiscal deficit is reduced and the fundamentals of the U.S. economy are improved. Speaking at Peking University, Mr. Geithner said the rise of China as an important economic force and fuller integration into the world economy have brought tangible benefits to the United States and other economies around the world. The world economy is experiencing the most challenging economic and financial pressures of the years. The International Monetary Fund predicts that the world economy will shrink for the first time in more than 60 years this year. The decline in world trade is likely to be the worst since the end of the Second World War. Compared with the potential growth rate of the world economy in normal years, output losses can reach between 3 trillion and 4 trillion dollars. In the face of this challenge, China and the United States are working together to help shape a strong global strategy to contain the crisis and to lay the groundwork for economic recovery. The combined effects of strong policy actions by China, the US and other major economies have helped slow the pace of growth, repair the financial system and boost confidence. As the crisis intensified, China quickly launched a strong plan for investment and financial measures to boost domestic demand. China has played a huge role in the world economic system, which is necessary for China, for the international financial institutions and for the world economy.　　China is too important to the global economy.　　Have closer cooperation space Reuters reported that Mr. Geithner had told correspondents accompanying reporters that the Obama administration wants to develop ties with China and that there is room for closer cooperation to promote economic recovery and sustain long-term economic growth. U.S. Treasury Secretary Timothy Geithner said June 1 that the United States and China must change their economic growth patterns and demand for U.S. consumption shrink, and he supports China's greater role in developing global economic policies. Geithner said the global economy should avoid deflation, but it will take time to achieve a durable recovery.　　He reiterated that the United States would reduce the medium-term deficit and would fully support China's role in the international financial institutions. U.S. Treasury Secretary Timothy Geithner reiterated his belief in a strong dollar, saying that U.S. capital markets are the most developed and Liquid city in the world, often talking about the automotive industry, Geithner said it is optimistic that U.S. auto companies will emerge from bankruptcy without government bailouts, and that the government wants to quickly and cleanly withdraw its share of ownership of auto companies. U.S. Treasury Secretary Timothy Geithner has pledged to reassure China that its U.S. investment is safe, promising that the Obama administration will slash its huge deficit as fast as it is determined that the economy is beginning to recover.　　He also stressed that in the near future, the U.S. economy will show more lasting stability, the financial system healthier, but the United States still have a long way to go, not only to work at home, but also with other major economies to create an environment for sustained economic recovery. The US and other major economies are urging heavyweight international financial institutions such as the International Monetary Fund to play a greater role in monitoring global economic activity. Geithner said the United States sees China as one of the most active economies and should have a bigger say on how to run the IMF. It is in the best interests of the United States to give China a bigger say in the United States ' insistence on the reform of the global system, and the United States wants to establish a relationship similar to the one we have had in the past few decades and the seven major industrial nations (G7). Other countries also want China to make a bigger contribution to the IMF.　　But there is a backlash among current members of the IMF, particularly in Europe, who are unwilling to give their share part to China. The two economies are working together. As President Obama's special Representative, U.S. Treasury Secretary Timothy Geithner arrived in Beijing, the first U.S. cabinet official to visit China after the April meeting between the heads of State and the United States, Xinhua reported.　　China's President Hu Jintao and U.S. President Barack Obama met in London to establish a new era of Sino-US relations, building a positive and comprehensive Sino-US relations in the 21st century, and agreed to establish a mechanism for strategic and economic Dialogue between the two countries. Geithner said the United States and China as the world's two largest economies, strengthening cooperation is not only beneficial to each other, but also to the world economy out of the current crisis is critical. He reiterated that the new United States Government is committed to promoting a positive, cooperative and comprehensive U.S.-China relationship. Analysts also noted that Mr Geithner said the visit would emphasise to the Chinese that the United States is committed to cutting its fiscal deficit after the current recession and financial crisis. The United States and China have been working closely together on the issue of economic and financial crisis, which is an extremely important and valuable stabilizing force for the global market.　　Analysts pointed out that the United States and China to maintain such frequent high-level contacts and exchanges, conducive to communication between the two sides, strengthen coordination and cooperation. In dealing with the financial crisis, one of the most topical topics of Sino-US cooperation is how to eliminate the high fiscal deficit and ensure the security of the assets of the U.S. Treasury bonds held by China. China, the largest holder of U.S. Treasury debt, has been highly concerned about its safety in the US investment. Analysts say China will be in a dilemma once the dollar declines and commodity prices rise. In the case of devaluation of the dollar against other currencies, if the renminbi does not follow the dollar depreciation, China's foreign trade pressure will be greatly increased, if the renminbi to follow the dollar depreciation, China will face imported inflationRisk。 Zhaoquanho, director of financial research at the Finance Department of the Ministry of Finance, expects Mr. Geithner's visit to China to further explain U.S. policy in order to allay Chinese concerns and ensure China continues to hold large holdings of U.S. Treasury debt assets. At the same time, China will further request the United States to pay attention to Chinese assets security, as far as possible to stabilize the value of the currency within reasonable limits, not to fluctuate greatly.