Paulson: Engagement with China only path to success

"Some people thought China's economic success as a threat, somehow we need counter or contain, somehow their success is going to hurt the United States, I think these people are worried about the wrong thing," U.S. Treasury Secretary Henry Paulson said on Tuesday.



"Frankly, China's continued economic growth is important to global economic growth, and positive for the United States," said Paulson during a Foreign Affair Magazine conference call on his new article, "A Strategic Economic Engagement."



"I believe that engagement is the only path to success," Paulson writes in his new article, which would be published by Foreign Affair Magazine in the latest edition. "The real concern should be that China stumbles, has problems along the way and that this hurts the global economy and our economy," he added in the teleconference.



Reviewing achievements of the U.S.-China Strategic Economic Dialogue talks, which was initiated by Chinese President Hu Jintao and U.S. President George W. Bush in 2006, Paulson said that next round of SED talks will focus on energy and environmental issues.



The Secretary also called for more Chinese investment in the United States as he is trying to negotiate a bilateral investment treaty with China in the fifth SED talks.



"There's a lot of U.S. investment in China... on the other hand there’s very little investment that the Chinese have in the Untied States and we think it would be a positive for both of our countries to have them have more investment in the United States," he said.



Getting greater protection for investors on both countries would be a "milestone" and a "positive step" for bilateral relations, he said. "The highest vote of confidence anyone can give our economy is to make a long-term investment."



"The United States and China -- and, indeed, the international community -- shares a powerful interest in China's successful integration into the global economic system," said the treasury chief.



"The prosperity of both nations depends on the ability of each to achieve balanced economic growth, on stable and vibrant trade and financial regimes, on diverse and dependable energy sources, and on sustainable progress that protect human health and the environment," he concluded.



Source:Xinhua