Chinese President Hu Jintao (R) meets with United States Treasury Secretary Henry Paulson at the Great Hall of the People in Beijing, capital of China, August 1, 2007.(Xinhua Photo) Photo Gallery>>>

    BEIJING, Aug. 1 (Xinhua) -- U.S. Treasury Secretary Henry Paulson said here Wednesday that the United States and China should work together to make the China-U.S. Strategic Economic Dialogue "a success" as a bridge in bilateral economic relations and resolving the trade disputes.

    Paulson made the remarks while meeting Chinese President Hu Jintao, according to a statement released by the Chinese Foreign Ministry. He said that he would work closely with Chinese Vice Premier Wu Yi to narrow differences and address bilateral trade issues through the mechanism.

    Launched in September 2006, the biannual economic strategic dialogue between Beijing and Washington serves as a platform to discuss long-term, strategic and comprehensive issues in the bilateral trade relationship.

    However, the dialogue has been criticized by some U.S. legislators for not delivering enough tangible results.

    Paulson told Hu the SED was "in a key stage of development", according to the statement, saying its success would be conducive to the common interests of the two nations.

    The projects or programs yielded from the first two rounds of dialogue should be "thoroughly implemented", Hu urged, proposing both sides should come out with new ideas and new approaches to cement cooperation, address the challenges and improve trade relations, the statement said.

    Hu said sound and stable bilateral economic relations were in the fundamental interests of both nations and peoples, and served "a need" to maintain a stable growth of the world economy.

    Paulson's visit, his second this year since a short tour in March, was widely regarded as paving the way for the third SED meeting in December in Beijing. He came to discuss pressing issues, such as the trade imbalance, the Chinese currency exchange rate, food safety, energy efficiency and environmental protection, with Chinese officials.

    Just days before his trip, the U.S. Senate Financial Committee overwhelmingly passed a bill that allowed the U.S. government to use a wide array of measures to force other countries to adopt more market-oriented currency policies.

    The bill would require the Treasury Department to identify countries with "fundamentally misaligned" currencies.

    The Treasury refused to cite China as a currency manipulator in its semiannual report to Congress in June.

    "I will not say anything other than the Treasury's view that legislation is not the proper way to proceed and deal with the currency issue," Paulson said after he met with Chinese Vice Premier Wu Yi on Tuesday.

    Paulson was reported by U.S. media to have joined Commerce Secretary Carlos Gutierrez and U.S. Trade Representative Susan Schwab in sending a letter to Senate Majority Leader Harry Reid to oppose both pieces of legislation.

    The letter, dated July 30 and released right after he met with Wu, said that since the SED was launched last year, the Chinese currency's rate of appreciation had tripled, and warned that either of the bills being considered would undo this progress.

    "I believe it is much more productive to have bilateral talks and engagement," Paulson told Xinhua.

    After arriving in Beijing on Sunday afternoon, Paulson traveled to Xining, capital of northwest China's Qinghai Province, for an "environmental tour" that included environmental protection programs and rural households in remote areas on the Qinghai-Tibet Plateau.

    In Beijing, Paulson also met with the heads of China's top economic planning body, central bank, forestry department, regulatory commissions of banking and securities before he wrapped up the tour on Wednesday evening.

Paulson on fact-finding journey in China

    BEIJING, Aug.1 -- U.S. Treasury Secretary Henry Paulson met Tuesday with Chinese officials in hopes of defusing demands in the U.S. Congress for sanctions over currency and trade disputes.

    Vice Premier Wu Yi, Paulson's counterpart in a "strategic economic dialogue" between the two countries, expressed hope that Paulson's visit this week to one of China's poorest areas will help him illustrate the country's true conditions to its critics in Congress. Full story

Paulson: dialogue helps U.S.-China economic tiesstay "on an even keel"

    BEIJING, July 31 (Xinhua) -- U.S. Treasury Secretary Henry Paulson on Tuesday hailed U.S.-China strategic Economic Dialogue (SED) as helpful for bilateral economic relationship to survive the hard times.

    "The SED allowed us to build a strong relationship, which has been useful in keeping our economic relationship on an even keel even during the times of tension," Paulson told Xinhua in an exclusive interview Tuesday evening immediately after his closed-door talk with Chinese Vice Premier Wu Yi. Full story