July 28, 2009 / 2:53 PM / 8 years ago

China: U.S. must manage dollar supply

WASHINGTON (Reuters) - Chinese Vice Premier Wang Qishan on Tuesday urged the United States to carefully manage the impact of the massive fiscal and monetary policy stimulus it has issued to counter a devastating financial crisis and deep economic recession.

<p>Treasury Secretary Timothy Geithner (L) greets Chinese Vice Premier Wang Qishan as he arrives at the Economic Track Opening Session of the U.S.-China Strategic and Economic Dialogue at the Treasury Department in Washington July 28, 2009. REUTERS/Yuri Gripas</p>

“As a major reserve currency-issuing country in the world, the United States should properly balance and properly handle the impact of the dollar supply on the domestic economy and the world economy as a whole,” Wang said at a U.S.-China summit.

Wang said the two countries should modify their economic growth models. China, which has built its economic might on a powerful export engine, would work to increase domestic consumption, he said.

“While ensuring economic growth, the Chinese government will focus on boosting domestic demand, and in particular consumer demand, focus on deepening reform and opening up advanced economic restructuring and improving people’s livelihood,” he said.

Wang called for the two economic powers to help each other recover from the financial turmoil and maintain the momentum of trade and investment.

“We will work to increase our imports from the United States. We hope the U.S. will relax its controls and restrictions on exports to China of its high-tech technologies,” he said.

Reporting by Mark Felsenthal and Glenn Somerville; Editing by W Simon

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