Special Representative of President Hu Jintao, Vice Premier Wang Qishan of the State Council, Special Representative of President Obama and US Treasury Secretary Timothy Geithner co-chaired the second round of China-US Strategic and Economic Dialogue in Beijing. The dialogue ended on May 25th. Ministers and senior officials of the two countries participated in the dialogue.
The two sides reaffirmed that they will continue to fulfill the commitments made in the first round of China-US Strategic and Economic Dialogue held in Washington on July 27-28, 2009, continue to deepen economic cooperation and promote strong, balanced and sustainable global economic growth.
I. Promoting strong economic recovery and more sustained and balanced economic growth
When the first round of China-US Strategic and Economic Dialogue was held in July 2009, the two sides promised to continue to implement strong stimulus measures to help China, the United States and the world economy tide over the global financial crisis. The two sides also promised to take measures to change the economic growth mode of the two countries and promote strong and sustainable growth after the full recovery of the world economy.
Since the first round of China-US Strategic and Economic Dialogue, the world economy has passed the most difficult moment, and the recovery momentum has been consolidated day by day. In July last year, China promised to enhance the role of domestic consumption in promoting growth, and then in 2009, the contribution rate of consumption to GDP growth was greatly increased. In the first round of China-US Strategic and Economic Dialogue, the United States promised to take measures to increase domestic savings. So far, private savings have increased. At the same time, the United States has been taking follow-up actions to realize its commitment to ensure long-term fiscal sustainability and promote public savings by implementing measures including comprehensive medical reform.
The two sides pledged to strengthen macroeconomic policy dialogue and coordination on fiscal, monetary and structural reforms. The two sides believe that macroeconomic policies should take into account the specific economic situation of each economy and the global economic situation, and be consistent with the relevant commitments under the "Framework for Strong, Sustainable and Balanced Growth" of the Pittsburgh Summit of the G-20. To this end,
With the consolidation of China's economic recovery, China will continue to carry out structural reforms and promote consumption by implementing fiscal and monetary policies to ensure that consumption plays a greater role in economic growth.
With the recovery of private demand in the United States, the focus of US fiscal policy will shift from maintaining total demand and supporting employment to reducing the medium-term federal government fiscal deficit and ensuring long-term fiscal sustainability.
We will work together to adopt policies to adjust domestic demand and related prices to promote more sustainable and balanced trade and growth.
The two sides recognize that the two countries share common responsibilities in achieving sustainable economic development. The two sides agreed to establish a more balanced economic growth model on the basis of the progress made last year. The future economic growth of the United States will rely more on domestic savings than foreign savings. The United States is committed to a responsible financial path. President Obama's budget has formulated specific measures to reduce the fiscal deficit of 1 trillion dollars in the next decade by implementing historic fiscal constraints. These measures include: freezing unsafe disposable expenditure within three years; Require the financial services industry to fully repay the cost of the troubled asset relief program; During the period of 200 1-2003, the tax reduction policy for families with an annual income of more than 250 thousand dollars expired; Cancel subsidies for inefficient fossil fuels. The US Congress has passed the "Live within our means" bill, which requires Congress to save 1 dollar in other areas if it increases non-emergency expenditure or reduces the tax of 1 dollar. Once the US economy recovers, the National Financial Responsibility and Reform Commission will formulate policies to deal with financial risks, and stabilize the ratio of debt to GDP at an acceptable level after the economic recovery.
By initiating reforms to slow down the growth of medical expenses, the United States has taken major steps to solve a major threat to its long-term finances. In addition, the United States will take further measures to improve the incentives for private savings by expanding employment-based retirement savings tools.
China will continue to strive to increase the contribution of domestic consumption to economic growth. China will improve the distribution pattern of national income and gradually increase the proportion of residents' income in national income. In order to effectively promote employment, China will accelerate the development of service industry, accelerate the reform of monopoly industries and provide more financing channels for small and medium-sized enterprises. In order to further improve people's livelihood, China will continue to strengthen the construction of social security system, including expanding the pilot scope of new rural social endowment insurance, accelerating the establishment and improvement of socialized pension service system, and increasing social security funds through multiple channels.
Recognizing the importance of small and medium-sized enterprises to the economic growth and sustainable development of China and the United States, the two sides promised to sign a cooperation agreement for small and medium-sized enterprises and hold a forum to promote cooperation between small and medium-sized enterprises in China and the United States. The two sides also promised to deepen local economic cooperation between China and the United States, including promoting the establishment of a cooperative partnership between China and the United States.
Two. Promote mutually beneficial and win-win trade and investment
The two sides recognize the importance of an open trade and investment environment for the two countries to promote economic growth, create jobs and innovate. They are committed to establishing a more open global trade and investment system and oppose trade and investment protectionism. Both sides agreed that it is very important to strictly abide by the rules of the World Trade Organization to prevent its abuse when launching trade remedy investigations and implementing trade remedy measures. The two sides are willing to work together to ensure that the Doha Round can reach a balanced and positive agreement on the basis of the existing achievements, including the negotiation mode. According to the recommendations of the recent evaluation meeting, the United States and China are willing to actively negotiate in all appropriate occasions and combinations. Both countries recognize the importance of the development goals of the Doha Round.
Based on the results of the Third China-US Strategic Economic Dialogue, China and the United States reaffirmed that their innovation policies will conform to the following principles: non-discrimination; Support market competition and open international trade and investment; Strong intellectual property law enforcement; And conforms to the principles of the WTO. Allow enterprises to agree on the ways and conditions of technology transfer, production technology and other proprietary information. China and the United States agreed to hold in-depth expert and high-level discussions on innovation policies under the framework of the China-US Joint Commission on Science and Technology as early as this summer. These meetings will include all relevant departments in China and the United States. When formulating and implementing innovation policies, China and the United States will fully consider the results of these discussions. China promised to submit a strong revised version of the government procurement agreement before the July meeting of the Government Procurement Committee of the World Trade Organization. The United States welcomes and looks forward to this. The United States welcomes China's public consultation on the draft standard for determining "domestic products" in the government procurement law.
The United States will seriously consider and give fair and reasonable treatment to China enterprises applying for "market-oriented industries" in the trade remedy investigation, and quickly recognize China's market economy status through the China-US Joint Commission on Commerce and Trade. China expressed concern about US technology export control. China and the United States promised to abide by the understanding reached in the first round of China-US Economic Dialogue, take effective measures, and actively implement the Sino-US cooperation action plan in key areas of high-tech trade under the guiding principles of China-US high-tech and strategic trade development, including the US government's assessment of China's export control concerns.
The two sides reiterated that they will continue to push forward the negotiation of bilateral investment agreements. The two sides agreed that successful negotiations will enhance the transparency and predictability of investors from both sides and support their commitment to opening up the global economy by promoting and protecting investment. The two sides are committed to improving the transparency of foreign investment laws and regulations. The United States reiterated that it would publish the proposal to amend the regulations of the Foreign Investment Review Board in the Federal Gazette according to law, and the public consultation period before the final publication was not less than 30 days. China has confirmed that it will publish the revised Catalogue of Industries Directed by Foreign Investment on the legal information website of China Municipal Government of the State Council Legislative Affairs Office according to the notice of the State Council, and the public consultation period before the final publication is not less than 30 days.
After the first round of China-US Strategic and Economic Dialogue, China has taken actions to simplify the approval procedures for foreign investment, and the United States is encouraged by this. On this basis, China promised to further simplify the examination and approval procedures, shorten the examination and approval time, improve transparency and narrow the scope of examination and approval. The United States confirms that the relevant procedures of the Foreign Investment Review Committee of the United States follow a transparent and strict statutory time limit, and promises to abide by these regulations. The United States will continue its efforts to clarify the relevant procedures of the Foreign Investment Review Board, including key definitions and concepts.
According to the economic situation, combined with the national industrial adjustment and revitalization plan, China will revise the catalogue of foreign-invested industries, encourage foreign investors to participate in high-end manufacturing, high-tech industries, modern service industries, new energy, energy conservation and environmental protection industries, and expand the fields in which these industries are open to foreign investors. The United States welcomes foreign investment, including China enterprises. The United States recognizes that the procedures of the United States Foreign Investment Review Board ensure that all foreign investments are treated consistently and fairly, regardless of their origin.
China will continue to abide by the recognized principles and practices of sovereign wealth funds. The United States reaffirms its commitment to adhere to the principles of openness and non-discrimination for foreign investors, including sovereign investment funds, in accordance with the OECD Declaration on Sovereign Wealth Funds and Recipient Countries' Policies issued in June 2008.
The United States recognizes that many China state-owned enterprises (state-funded enterprises) have implemented the shareholding system, established the corporate governance structure, and diversified their shares, many of which have become listed companies. China continues its efforts to transform more and more state-owned enterprises into market-oriented legal entities. China will continue to promote the reform of state-owned enterprises and further promote the diversification of investors, including issuing publicly traded stocks and introducing and holding strategic investors, including non-public investors and foreign investors.
After the economic dialogue, the Export-Import Bank of The Export-Import Bank of China and the United States agreed to establish a cooperation mechanism for trade financing, and pointed out that the two banks had earnestly fulfilled their previous commitment to facilitate trade financing of 20 billion US dollars. In addition, the Export-Import Bank of The Export-Import Bank of China and the United States will also explore cooperation in joint financing, take measures to promote the export of small and medium-sized enterprises, and encourage participation in multilateral forums to promote cooperation and exchanges in the field of trade financing. China and the United States promised to strengthen exchanges on inspection and quarantine and quality and safety supervision of American soybeans exported to China, so as to sign a memorandum of understanding before the third round of China-US Strategic and Economic Dialogue. The General Administration of Customs of China and the Office of the United States Trade Representative agreed to discuss the results of specific product case studies on the issue of origin, and agreed to hold a joint dialogue of origin experts before the third round of China-US Strategic and Economic Dialogue.
Three. The Stability and Reform of Financial Market
The two sides will continue to reform their respective regulatory frameworks so that financial institutions can support the real economy and promote innovation in the overall stable financial system. China and the United States will seek to promote financial markets to serve the needs of residents, enterprises and productive investment by strengthening supervision, improving transparency and improving accountability. The two sides will take measures to implement prudential supervision standards at the national and international levels, promote equal competition and avoid financial market segmentation, protectionism and regulatory arbitrage. Both sides support the implementation of higher-level and higher-quality capital requirements and countercyclical buffer capital nationwide, as elements of the Basel capital framework, and support the improvement of liquidity risk requirements and the establishment of forward-looking clauses, so as to reduce the motivation of banks to take excessive risks and create a more stable financial system that can resist negative shocks. Both sides support the introduction of the leverage ratio standard as a supplementary measure based on the risk framework of the Basel Accord.
Recognizing the increasing degree of financial integration between the two countries under the background of globalization, the two sides promised to strengthen cooperation on financial supervision issues with cross-border influence. The China Banking Regulatory Commission and the Federal Deposit Insurance Corporation of the United States will strengthen supervision cooperation and information sharing on the disposal of cross-border banking institutions within their respective jurisdictions. The People's Bank of China and the Federal Deposit Insurance Corporation of the United States will strengthen cooperation in deposit insurance, financial services, closure of financial institutions and other areas related to financial stability. The two sides will further strengthen cooperation and exchanges on the progress of insurance supervision, including insurance asset management.
The United States is committed to implementing comprehensive financial regulatory reform, coping with excessive risks, reducing moral hazard, providing more protection for consumers, better solving micro-and macro-prudential supervision, and solving the problem that financial companies are "too big to fail".
The United States promises to continue to strengthen the supervision of "government-supported enterprises" and ensure that "government-supported enterprises" have sufficient capital and ability to fulfill their financial responsibilities. The extensive housing policies of the U.S. government, including supporting "government-supported enterprises" to continue to operate and the purchase of mortgage-backed securities by the U.S. Treasury and the Federal Reserve, have been playing a very important role in restoring the stability of the housing market and maintaining the availability of mortgage credit. The US government will listen to the opinions of all stakeholders and seek to work closely with Congress to formulate a comprehensive reform plan for "government-supported enterprises". The U.S. government promised to take appropriate measures to further promote reform and ensure that "government-supported enterprises" have the ability to fulfill their debt repayment obligations.
China has started stock index futures trading, which will allow qualified foreign-invested companies established in China to conduct stock index futures business according to relevant laws and regulations. China will allow qualified foreign institutional investors to invest in stock index futures products on the basis of prudent supervision.
The United States welcomes China's progress in improving the accuracy and frequency of balance of payments and official reserve data reporting according to international standards. China said that it will continue to improve its work in this area according to the actual situation and statistical capacity in China.
Four. Reform of the international financial system
The two sides reiterated their support for the G-20 as the main forum for international economic cooperation and to play a greater role in international economic and financial affairs. The two sides agreed to work together to ensure the positive results of the Toronto and Seoul summits.
Both sides agreed that the International Monetary Fund (IMF) must play a key role in promoting global financial stability and rebalancing growth. The two sides reiterated their support for the implementation of the commitments made by the leaders at the Pittsburgh Summit on the reform of the IMF's share and governance structure, welcomed the successful capital increase of 500 billion US dollars by G20 members through the new loan arrangement last year, and agreed to make joint efforts to reform the IMF to better fulfill its obligations.
The two sides welcomed the key actions taken by multilateral development banks to alleviate the impact of the global financial crisis on the world's poorest groups, and reiterated their support for the central role of multilateral development banks in global poverty reduction. The two sides promised to work together to ensure that multilateral development banks have sufficient resources through general capital increase. The two sides welcomed the recent understanding on the principle of supporting the World Bank, the Inter-American Development Bank and the African Development Bank to increase their capital and commit themselves to strong reforms. The two sides also welcome the understanding reached on the new equity arrangement of the World Bank, which will better reflect the weight of developing countries and countries in transition in the world economy and protect the voice of the poorest countries. The two sides also look forward to working together to promote the successful replenishment of the preferential loan window of multilateral development banks, which is of vital importance to the poorest countries.
In order to meet the global challenges that need global coordinated action, the two sides agreed that the World Bank, regional development banks and other international organizations should pay more attention to the following issues: ensuring food security by improving agricultural productivity and obtaining technology and food; Human development in the poorest and most challenging environment; Private sector-led growth and infrastructure; Effectively respond to the needs of relevant countries to integrate climate change into economic development.
The two sides agreed to further strengthen cooperation in the Financial Stability Board (FSB) and the Global Tax Transparency and Information Exchange Forum. In view of the current economic scale, financial market activities and national financial stability arrangements of China and China Hong Kong Special Administrative Region, the United States supports China and China Hong Kong Special Administrative Region to maintain their existing seats in the Financial Stability Board. As members of the Financial Stability Board, China and the United States are committed to maintaining financial stability, keeping the financial industry open, improving the transparency of the financial industry, implementing key international financial standards agreed by the leaders of the G-20, and promising to conduct regular peer review.