June 18, 2008	Wednesday	Jamadi-us-Sani 13, 1429

ANNAPOLIS (Maryland), June 17: US Treasury Secretary Henry Paulson on Tuesday called on China to press further on market-opening measures despite a troubled global economy as the two nations opened high-level talks.

As talks kicked off in Annapolis, Maryland, east of the US capital, Paulson said the economic difficulties facing both China and the United States should not lead to restrictions on trade and investment.

“As we manage through the current challenges, we must also focus on the long-term fundamentals that underlie sustainable growth in both our nations,” said Paulson, who led the US side to the two-day cabinet-level “strategic economic dialogue” (SED) at the US Naval Academy.

Paulson said he would “highlight how free trade, competition and open economies are essential.

“Openness and trade create jobs and opportunities for people to rise out of poverty, and are necessary for economic growth and stability in both China and in the United States,” he said, with Chinese Vice-Premier Wang Qishan by his side and cabinet ministers from the two nations standing behind them.

Wang, who led the Beijing team to the dialogue, warned against politicising economic issues and moved to deflect any criticism by highlighting the US housing market crisis that has led to massive losses in the finance sector and a global credit crunch.

“In an effort to solve the frictions and differences between the two countries through dialogue and in order to reduce misunderstandings, we should try to avoid major economic issues from being complicated and politicized,” said Wang, making his first appearance at the twice-yearly SED launched in 2006.

“In depth discussions and coordination between the two sides in terms of macroeconomic and financial policies are conducive to safeguarding the financial stability of both countries and the international economy,” he said.

China is grappling with rising inflation and growing macroeconomic imbalances while the United States is also on alert against price pressures despite a weak economy.

The two powers have expressed concern over protectionism amid their economic difficulties, fuelled by rocketing oil and food prices and financial market instability.

US officials were expected to again raise the issue of the value of the yuan, which some say is artificially low and thus a factor in the massive trade imbalance between the two countries.

The United States is saddled with a ballooning trade deficit with China, which hit a record $256.2 billion last year.

Paulson was also expected to press for more efforts on protection of US patents and copyrights as well.—AFP