Remarks
Hillary Rodham Clinton
Secretary of State
Secretary of the Treasury Timothy Geithner
Great Hall of the People
Beijing, China
May 25, 2010


MODERATOR: (Via translator) I now invite Special Representative of President Hu Jintao, Vice-Premier Wang Qishan to speak.

VICE-PREMIER WANG: (Via translator) Friends from the press, under the guidance of President Hu Jintao and President Obama, with the considered (inaudible) of both sides, the second round of China-U.S. S&ED have achieved complete success. This round fully illustrates the nature as being overriding, strategic, and long-term, and the principle of not replacing, not repeating, and not weakening exist dialogue mechanism between the related sectors of China and the United States. It has been candid, pragmatic, and successful.

China and the United States are respectively the largest developing country and developed country in the world. Our economic relationships (inaudible) and has had a global impact. Under the current extremely complicated circumstances, the two sides have had in-depth discussions, and expanded common ground on issues to each other's concerns, (inaudible) world economic situation, transform economic growth pattern, strengthen economic and financial cooperation, and reforming global economic governance (inaudible). Discussions, as such, are of a great importance to (inaudible) the upturn in our two economies and promoting strong, sustainable, and balanced growth of the world economy.

In fact, our two sides sitting together, having in-depth communications, candid exchanges, and rational discussions on our common interests and differences existing between us, this in itself is the most significant outcome of this round. As our economic relationship gets increasingly close, we are now able to take into full consideration our differences in history, culture, national conditions, development stage, economic structure, and market sophistication. We are now able to manage our differences and problems arising in the course of growing economic relationship with a more rational and mature manner. While upholding to our respective principles, we have better understood our positions, built a consensus (inaudible) cooperation, and achieved win-win.

Friends from press, I hope, through you, to make known to the world our firm confidence in working together to address challenges and promote the positive, cooperative, and comprehensive China-U.S. relationship (inaudible). Thank you.

MODERATOR: (Via translator) Thank you, Vice-Premier Wang. Now I would like to hand over the microphone to State Councilor Dai Bingguo.

STATE COUNCILOR DAI: (Via translator) Dear friends from the press, friends, good afternoon. With the personal care of President Hu Jintao and President Obama, and through the joint efforts of the two sides, the second round of the China-U.S. strategic and economic dialogues came to a successful conclusion.

Just now, President Hu Jintao and Premier Wen Jiabao met. Secretary Clinton, Secretary Geithner and other members, they had very rich and profound discussions. Our dialogues have taken two days. And, looking back, starting from 2005 we have had several rounds of strategic dialogues. And last year we had the first round of the strategic and economic dialogue. For the strategic dialogue we have had over 100 hours of dialogues. And this mechanism, I am afraid, is one of the most special mechanisms, if it is not the most unique mechanism in the world. And I think both sides need to make the best out of this mechanism, and continue to improve and safeguard this mechanism, and to serve the interest of building the positive, cooperative, and comprehensive relations.

And for this round of the dialogue I fully agree with Vice-Premier Wang Qishan's positive comments on the dialogues. During this round, Secretary Clinton and I reviewed the achievements made in the previous strategic dialogues. We had in-depth and candid discussions and communications with a focus on advancing China-U.S. relations in the new era, respecting each other's core interests and major concerns, strengthening coordination and major international regional issues, and jointly promoting transformation of the international system, and development of cooperation mechanisms in the Asia Pacific region.

Competent departments of the two countries held a consultation in bilateral meetings on issues including energy, security, climate change, and UN peacekeeping operations. We have signed a number of agreements, and the dialogues produced many results. Although we haven't agreed on each and every of the major issues, the dialogues, I believe, are conducive to the further advancement of the positive, cooperative, and comprehensive relations in 21st century.

We both recognize that the world has entered a post-financial crisis era. The circumstances we're in and the responsibilities on our shoulders decide that only by exchanging ideas closely we can expand our mutual trust. Only by advancing cooperation can we achieve and win results. And only by strengthening coordination we can meet the challenges. And only by helping each other out as passengers in this gigantic ship of China-U.S. relationship will (inaudible) forward, braving winds and waves.

We believe that the China-U.S. relationship is critical to both countries and the whole world. The two sides also believe that, to cultivate and deepen China-U.S. strategic mutual trust is important to the advancement of China-U.S. relationship in the new century.

The two sides emphasized that it is impossible for China and the United States to agree on all issues. And the two sides will have disagreements and differences. What is important is to observe the spirit and principles enshrined in the three Sino-U.S. communication, China-U.S. joint statement: respect and accommodate each other's core interests and major concerns; properly handle all defensive and sensitive issues, including Taiwan and Tibet-related issues; and consolidate the basics of mutual trust. As long as we keep to this right direction, we will be able to remove disruptions and obstacles and further advance our relations. The two sides re-emphasize that we will respect each other's core interests and major concerns. We will continue to properly handle the defensive and sensitive issues in the relations, according to the principle of mutual respect and equal discussions, so that our relations will steadily and soundly move forward.

The two sides stated that we will stay committed to increase the stability in the relationship. We agreed to advance communication, consultation, coordination, and cooperation on bilateral, regional, and global issues. During the dialogues, the two sides exchanged views on the current situation on the Korean Peninsula.

The two sides believe that ensuring peace and stability in northeast Asia and the Korean Peninsula is critical. And under current circumstances, relevant parties should proceed from the -- safeguarding the overall interests of peace and stability in the region, calmly and appropriately handle the issue, and avoid escalation of the situation. In the dialogues we further discussed the building of the positive, cooperative, and comprehensive relationship in the 21st century. We believe that it is a relationship of -- between cooperative partners, instead of between rivalries and enemies. It is the cooperation of peaceful coexistence, instead of being on guard against each other, or (inaudible) each other. It is a mutually beneficial win-win relationship, instead of one that is seeking one's own benefits at the expense of the others. It is a relationship equal -- equality, instead of yielding ­-- one side yielding to the other side. It is a relationship in which we exchange ideas frankly, trust each other, and have a reasonable and objective perspective of each other's strategic intentions, and respect each other's core interests and major concerns. And it is a relationship out of a strong sense of responsibility to the two peoples, and the people of the rest of the world. It is not a relationship of alignment, or targeted against any third party.

Finally, I would like to sincerely thank Vice-Premier Wang, Secretary Clinton, and Secretary Geithner. I would like to thank all the members of both teams, and thank all those who care about and support the China-U.S. strategic and economic dialogue. Thank you.

(Applause.)

MODERATOR: (Via translator) (Inaudible) Councilor Dai. And now I would like to (inaudible) Secretary (inaudible).

SECRETARY CLINTON: Thank you very much. On behalf of all of the American delegation, I want to thank our generous hosts, Vice-Premier Wang and State Councilor Dai, for their excellent preparation and the extraordinary time that has been given to this dialogue, along with the Chinese team and the American team. This dialogue is the premier forum for one of the most important and complex relationships in the world. And the breadth and depth of our delegation continues to grow, because it reflects the agenda that we are working on together.

Earlier this year, our relationship faced uncertainty, and many questioned the direction we were heading. Now, in an earlier era, we might have experienced a lasting set-back. But this dialogue mechanism, and the habits of cooperation it has helped create, along with the confidence it has built, helped put us rapidly back on a positive track. This strategic and economic dialogue (inaudible), and it reflects the maturity, durability, and strength of our relationship. So, over the last days we discussed a wide range of the most complex bilateral, regional, and global challenges.

Now, as we have said many times, we do not agree on every issue. We don't agree even sometimes on the perception of the issue. But that is partly what this dialogue is about. It is a place where we can discuss everything, as State Councilor Dai said, from Taiwan to universal human rights. And in the course of doing so, we are developing that positive, cooperative, and comprehensive understanding that leads to the relationship for the 21st century that both President Obama and President Hu Jintao put into motion when they agreed to do this dialogue.

The success of the U.S.-China relationship will ultimately be measured by the results we deliver to our people. Do our dialogues and our collaborations produce changes that people see in their daily lives, and that contribute to global progress or not? That is both our challenge and our responsibility.

So, this round of the dialogue did not solve all of our shared problems, but it did produce a number of concrete results, some of which you saw as Chinese and American officials came forward to sign memoranda of understanding.

One in particular is in our efforts to meet the challenges of climate change and clean energy. We signed an agreement that, for the first time, will allow American experts to work closely with Chinese colleagues to begin exploring China's vast natural gas potential. We believe that could well lead to new economic opportunities in both countries, and a lower carbon emission load for our planet. This is part of the broader drive for energy security and greater market transparency and efficiency, closer cooperation, and more focus on cleaner energy (inaudible).

Earlier today I was pleased to sign with State Councilor Liu (inaudible) U.S.-China consultation on people-to-people exchange. President Obama has announced a goal of sending 100,000 American students to China in the next 4 years to learn Mandarin, to experience Chinese culture, and to learn about the hospitality of the Chinese people, while they serve as ambassadors for the United States in China. And toward this end, I want to thank State Councilor Liu for her announcement of 10,000 scholarships for American students.

Our U.S.-China relationship must extend beyond the halls of government to our homes, our businesses, and our schools. And these exchanges really offer the opportunity for people to connect and collaborate, and they remind us of how much we have in common.

As part of this dialogue, we also had our most serious high-level discussion to date on development, which is a core pillar of our foreign policy, along with diplomacy and defense. And we had very frank and detailed conversations about international security challenges and regional hot spots, including Iran and North Korea. We stressed the importance of reaching a conclusion on resolution of the United Nations Security Council to send a message to Iran to, "Live up to your international responsibilities or face growing isolation and consequences."

Similarly, with respect to North Korea, the United States and China share the objective of peace and stability on the Korean Peninsula. Last year, we worked to pass and enforce a strong UN Security Council resolution in the wake of North Korea's nuclear test. Now we must work together again to address the serious challenge provoked by the sinking of the South Korean ship.

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We are looking forward to working with our friends in South Korea. We appreciated the very statesmanlike approach that President Lee is following, and the prudent measures that he announced in his speech. No one is more concerned about the peace and stability in this region than the Chinese. We know this is a shared responsibility. And in the days ahead, we will work with the international community and our Chinese colleagues to fashion an effective and appropriate response. The consultations between China and the United States have started here in Beijing. They continue very closely, and we expect to be working together to resolve this matter.

China and the United States are two great nations with a compelling interest in global stability and security. We have different histories, and are at different stages in our development. But we recognize that we share a responsibility for meeting the challenges of our time, from combating climate change to curbing nuclear proliferation and rebalancing the global economy. This dialogue is a mechanism to exercise that collective leadership and meet our collective responsibilities.

So, there is much that we have worked on and that we are accomplishing that can only happen when people come together and meet as we have. Yesterday, President Hu Jintao said in his opening remarks, "Not even the most sophisticated telecommunication technology can replace face-to-face exchanges." Well, he is absolutely right. So I am very pleased that we had face-to-face exchanges, and we developed greater understanding and deepened our relationship. And we look forward to hosting you, Vice Premier Wang and State Councilor Dai, next year in Washington for the third round of the strategic and economic dialogue.

(Applause.)

MODERATOR: (Inaudible.)

SECRETARY GEITHNER: (Inaudible) offer my appreciation to Vice-Premier Wang and State Councilor Dai. (Inaudible.) I want to thank all of those who joined us from the administration here today, and to say what a pleasure (inaudible) together in China. (Inaudible.)

Our economic relationship is strong and will get stronger. It rests on recognition by Presidents Hu and Obama (inaudible) and shared responsibilities. Over the past year, we have acted together to help restore financial stability and economic growth to a (inaudible). And because we stood together, and because our presidents (inaudible) act quickly and decisively, (inaudible) in a much stronger condition (inaudible) to successfully overcome the challenges still ahead.

When people write the history of this economic crisis, they will point to the decisive role played by international cooperation, in stark contrast with much of the pattern in past crises, where division (inaudible) and nations turn (inaudible). And in writing that story, the story will point to the critical role played by the United States and China, and the remarkable story of two nations, with such different traditions and such different stages of development, coming together with common objectives (inaudible) action.

Last July, when we met in Washington, China and the United States (inaudible) economic growth. The G20 embraced that cause, and recognized it as a global (inaudible). And since that time, China and the United States (inaudible). Americans are (inaudible) investing more, and borrowing less from the rest of the world, and China is consuming and importing more.

We work together, China the United States, (inaudible) substantial increase in financial resources for emerging markets and developing economies through the IMF and the multilateral development banks, and to restore trade (inaudible). And these commitments, these actions, were essential to arresting the freefall in global economic activity and averting much greater damage to the livelihoods of hundreds and millions of people around the world.

And, quietly but surely, we -- China and the United States -- are building a very strong network of cooperative arrangements on a range of goals, from boosting access to trade financial facilities for small and medium-sized enterprises, (inaudible), helping each (inaudible).

This second meeting of the strategic and economic dialogue takes place against the backdrop of a promising (inaudible) pave the road to China and the United States and across (inaudible), tempered by a recognition of the challenges faced by countries in Europe in (inaudible), sustainable, and promoting more balanced economic growth.

We agree here to do (inaudible) to strengthen and reinforce this global economic recovery, and we agree to support the strong programs of policy reforms and financial support now being undertaken by the nations of Europe. We welcome the strong commitment of President Hu to the process of economic reform to expand domestic demand and increase household consumption, to expand market access and keep with established international, economic, and trade goals, and to advance trade and investment liberalization.

We welcome the fact that China's leaders have recognized that reform of the exchange rate mechanism is an important part of their broader economic reform agenda. Allowing the exchange rate to reflect market forces is important, not just to give China the flexibility necessary to sustain more balanced economic growth with low inflation, but also to reinforce (inaudible) resources more productive, higher value-added activity (inaudible).

Now, this is, of course, China's choice. And we welcome the progress we have achieved to provide a more level playing field for American firms exporting to China and operating in China. China has taken a series of steps to adjust and modify its programs designed to promote (inaudible) and technological advancement. China has revised certain aspects of this (inaudible), such as the requirement that products be (inaudible) or trademarked in China, eligible for certain (inaudible). China has a firm commitment to abide by the principles of non-discrimination, market competition, open trade, intellectual property rights protection, and leaving the terms of technology transfer and production (inaudible) to agreements between enterprises.

And we have agreed to a process of dialogues in the coming weeks and months, led by my colleague, Ambassador Kirk, Secretary Locke, and Office of Science and Technologies Director, John Holdren to find ways to address our main concerns.

We also welcome (inaudible) procurement by July of 2010, as well as a commitment to reduce barriers (inaudible) high-technology goods, high-end (inaudible), and energy saving products (inaudible) facilitate more (inaudible). With this progress, it does not (inaudible) all our concern, but it gives us a set of (inaudible). And I want to thank Vice-Premier Wang, in particular, for his personal role in advancing the practical solutions to our concerns.

The relationship between our two countries is strong and beneficial to both sides. American exports to China are growing much more rapidly (inaudible). Compared to the first quarter of 2009, (inaudible) by the crisis. Our exports to China have risen by almost 50 percent, roughly double (inaudible). And these developments demonstrate (inaudible) the strength and dynamism of the American economy. It demonstrates the importance and the (inaudible) process (inaudible) in China, (inaudible). It demonstrates that our strengths are complementary. They demonstrate that American companies are leaders in innovation in the goods and services that the world needs to grow.

We are seeing a (inaudible) rise in private investments in the United States, dramatic ongoing (inaudible) supported by a stronger financial system, a carefully designed and very substantial commitment by the U.S. Government to promote investment, innovation, and basic research.

We bring to the dialogue respect for China's interests, and a commitment to close cooperation on all the major global challenges of our time. And we bring a recognition of the special responsibility of the United States to contribute to the stability of the global financial (inaudible).

I want to conclude, again, by expressing my sincere appreciation to President Hu, Premier Wen, Vice-Premier Wang (inaudible), for their commitment to work to strengthen this relationship, and we look forward to continuing progress in the forthcoming G20 meetings. (Inaudible.) Thank you.

(Applause.)



PRN: 2010/T29-17