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Statement of 14th China-US Joint Economic Committee Session
Following is the full text of the Joint Statement released by the 14th Session of the China-U.S. Joint Economic Committee in Beijing Tuesday:
Joint Statement
14th Session of the China-US Joint Economic Committee
Beijing, 11 September 2001
At the invitation of Chinese Finance Minister Xiang Huaicheng, U.S. Treasury Secretary Paul O'Neill led a delegation to China to co-chair the 14th China-U.S. Joint Economic Committee (JEC) meeting on 11 September 2001. During the meeting, senior officials held extensive and constructive discussions on a range of economic issues. The two ministers agreed that a more integrated China-U.S. economic relationship benefits both sides. The two ministers noted that the JEC has contributed to this integration and to improved collaboration in bilateral and international fora.
In the meeting, the discussions focused on:
Macroeconomic Policies. The two sides noted the global economic slowdown. Yet they remain confident about near-term prospects, in light of policies already adopted and the strong fundamentals in a number of economies. They agreed that maintaining policies that promote growth as close as possible to full potential in the economies of the U.S. and China is the best support they can provide for a global recovery.
Although affected by the external slow-down, China's economy has maintained stable growth due to a combination of proactive fiscal policy and sound monetary policy. Structural adjustments and reforms continue to move ahead, further enhancing the efficiency and quality of growth. The economy's external position remains strong. China will continue its sound macroeconomic policies as well as structural reform to ensure sustainable growth of the economy.
The U.S. economy began to slow in mid-2000. The government took appropriate monetary and fiscal policy steps, cutting taxes, injecting nearly US$40 billion into the economy, and lowering marginal tax rates to promote long-term growth. Combined with recent interest rate cuts, these steps lay the groundwork for higher growth in 2002.
MDB Reform. Both sides agreed that MDBs should be committed to improving productivity as the most essential element in raising living standards. MDBs, through their resource transfers, should be catalysts for using market mechanisms to enhance access to, and efficient use of both domestic and international capital. To better achieve this, MDBs should review lending instruments and find the resources for reforms that include greater use of grants. They should promote effective public sector management and financial sector reform in borrowing countries. They should improve coordination at the country and institutional level and strengthen the transparency and accountability of their internal governance.
Trade Liberalization. Both sides agreed that stable development of multilateral and bilateral economic and trade relations is in line with the long-term interests of both economies. They both welcome China's accession to the WTO, based on existing commitments, and call on other WTO members to support the launch of a new round of multilateral trade negotiations this November in Doha as a way to promote further long-term global growth and prosperity. Both sides also emphasized the importance of bilateral economic and trade relations.
Financial Crime. The two sides discussed the institutional setup, legislative framework and obligations of central banks as well as other financial institutions for combating financial crimes. Both sides looked forward to enhancing cooperation in this area, both bilaterally and through multilateral mechanisms.
Financial Sector. The two sides discussed access to each other' s financial markets, based on internationally accepted fiduciary standards. Both sides agreed that cooperation in the financial area should be further expanded. They emphasized that political interference in financial market operations should be minimized.
Other Issues. The two sides discussed ways to strengthen cooperation under existing agreements regarding trade in goods made by prison labor. Both sides noted the importance of transparent budgetary data and improving economic statistics.
Interim Collaboration. Participants agreed to collaborate during the coming year on many of the issues raised, in the hope that related progress can be reported at the next JEC.
The two ministers agreed to hold the next session of the JEC in the U.S.
Participants on China side included representatives from the Ministry of Finance, People's Bank of China, Ministry of Foreign Affairs, State Development Planning Commission, State Economic and Trade Commission, Ministry of Public Security, Ministry of Justice, Ministry of Foreign Trade and Economic Cooperation, General Administration of Customs, China Securities Regulatory Commission and China Insurance Regulatory Commission. The U.S. delegation included representatives from the Department of the Treasury, the Federal Reserve Board and the Department of State.
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