BEIJING (AFP) — US Treasury chief Henry Paulson said Friday the United States and China would make 20 billion dollars available in trade financing to boost commerce amid the global slowdown.
"To support trade flows during this period of financial turmoil the US and China announced today that our two export-import banks will make available an additional 20 billion dollars for trade finance, particularly for creditworthy importers in developing economies," Paulson said.
China and the United States completed their last high-level economic meeting under the Bush administration with vows to fight protectionism in a time of global financial crisis.
Freeing up trade to boost weakening global growth was one of the main themes of the two-day Strategic Economic Dialogue, led on the US side by Paulson.
"Both sides believe that in the face of the growing challenges posed by the... crisis, we must fully oppose all forms of protectionism," Vice Premier Wang Qishan, the head of the Chinese team, told reporters.
"We stand ready to work actively with other countries in the world to promote the early resumption of the WTO Doha round of negotiations so as to... promote prosperity and growth of the world economy and trade."
The last round of Doha trade talks collapsed in July when the United States and India clashed over measures to protect poor farmers against import surges.
Paulson told the briefing the United States and China would make 20 billion dollars available in trade financing to boost commerce amid the global slowdown.
"To support trade flows during this period of financial turmoil the US and China announced today that our two export-import banks will make available an additional 20 billion dollars for trade finance, particularly for creditworthy importers in developing economies," he said.
On Thursday, US Trade Representative Susan Schwab suggested that some nations had not followed up on promises to resist protectionism, made at forums such as a November summit of 20 major industrialised and emerging economies.
"We have yet to see those sentiments translated to the level of trade negotiators... and in some cases we have seen some countries move in protectionist directions," she said.
China's ability to maintain domestic growth, and help lift the global economy in this manner, was also a major topic during the discussions.
"If there is a big economic crisis in China, the confidence of the global economy will be hurt," said the People's Daily in an editorial in its overseas edition.
"In this situation, the fact that China and the United States sit down and exchange views... not only benefits the two countries, but benefits all countries in the world."
But amid the pledges to support the world economy, an eternal bone of contention -- the value of the Chinese yuan -- again moved up the agenda in the talks at the Diaoyutai State Guest House in western Beijing.
"If there's no major change to the overall international economic environment, and if everybody continues to work together in a serious manner to deal with the ongoing financial crisis, I think we will still be able to keep (the yuan) stable," Commerce Minister Chen Deming said Thursday.
Chen made the remark as the United States kept up pressure for the yuan to appreciate more quickly.
"We certainly emphasised the importance in our view of continued currency reform, and that currency reform is important for continuing to re-balance China's economy," a senior US official said Thursday.
The Strategic Economic Dialogue has taken place since 2006 and is the highest-level forum for exchange between economic policy-makers of the two nations.
This round is the last under President George W. Bush's administration. His successor, Barack Obama, has not indicated whether the talks will continue on his watch.
"We look forward to continuing this candid and pragmatic dialogue with a new administration in the United States," Vice Premier Wang told the briefing Friday.
"We firmly believe that tomorrow China and US relations will only be better."
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