As the two largest economic powers of the world, the US and China have "strong overlapping interests" and they need to focus on a fair and balanced economic relationship, Treasury Secretary Steve Mnuchin said today.
Advancing President Donald Trump's agenda, Mnuchin said a fair and balanced trade means providing the same access for American firms in China as the US provide for Chinese firms.
"As the world's two largest economies and the major drivers of global growth, the US and China have strong overlapping interests. We need to work together to maximize the benefits for both sides. We need to focus on a fair and balanced economic relationship between the US and China," he said at the inaugural Comprehensive Economic Dialogue between the two countries.
Established by Trump and his Chinese counterpart Xi Jinping during their Mar-a-Lago Summit, the Comprehensive Economic Dialogue is an important step in economic relations between the two countries, Mnuchin said.
"With the Comprehensive Economic Dialogue, our hope is that we can increase our focus on concrete and targeted commitments to address both short- and long-term strategic challenges," Mnuchin as he welcomed the high-powered Chinese delegation led by Vice Premier Wang Yang.
The Commerce Secretary Wilbur Ross also address the meeting along with Wang.
Mnuchin said a fair and balanced trade means addressing the imbalances caused by Chinese government intervention in its economy, as well as addressing the impact of China's industrial, agricultural, technological, and cyber policies on US jobs and exports.
"It means holding the US and China to a high standard of communicating new and revised policies and regulations so that governments and individuals worldwide can better tailor their policy and investment decisions," the treasury secretary said.
"A more balanced economic relationship will create prosperity for our two countries. With strong, sustainable growth benefits the US, China, and the world, US and Chinese stated economic goals can be mutually beneficial. We should pursue these areas of common interest," he said.
For example, China's rebalancing toward household consumption and away from relying on investment and exports will not only generate healthy, sustainable Chinese growth but will also create more consumers for US goods and services, he said.
"Opening China's markets to foreign firms will improve the competitiveness of Chinese firms and ultimately provide higher quality goods and services to Chinese consumers. Foreign participation in China's financial sector will help improve the allocation of resources to the most productive sectors of the Chinese economy and contribute to a stronger global financial system," Mnuchin said.
The United States, he said, is committed to restoring robust growth through three key policies: reforming the tax system, streamlining regulations, and improving trade policy.
"The United States and China must also work together - both bilaterally and multilaterally - to foster a healthy and sustainable global economy. We must look to strengthen the existing international economic architecture and to advance high standards in development finance," Mnuchin said.
A day earlier, the Chinese Vice Premier urged the US to relax export barriers against China.
"The Chinese and US economies do have a competitive dimension, but there is far greater complementarity than competition," he said at a business luncheon.
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