News Analysis: Upgraded China-U.S. dialogue a new platform to expand cooperation

BEIJING, July 26 (Xinhua) -- The first China-U.S. Strategic and Economic Dialogue will inject vigor into the world economy's revival, while the global economic downturn is yet to bottom out, predicted two Chinese experts on international relations and economy.

The dialogue, scheduled for July 27 and 28 in Washington, would be a higher profile gathering than its predecessor -- the Strategic Dialogue and the Strategic Economic Dialogue, Li Changjiu, an expert on economic affairs at the Center of World Studies in Beijing said.

This is manifested by the fact that U.S. President Barack Obama will make a speech and top officials from both sides, including Chinese State

Councilor Dai Bingguo, Vice Premier Wang Qishan, U.S. Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner, will preside over the talks, he noted.

"By upgrading the strategic and economic dialogue, the U.S. aims to strengthen its economic ties with China, a rising power and the biggest developing country, amid the current economic crisis," Li said in an interview with Xinhua.

When the global financial crisis started at the end of last year, the United States and other countries in the Group of Eight came to realize that they could not deal with it alone and that emerging powers like China are reliable partners to counter the downturn.

In such a context, both sides are expected to broaden their economic cooperation, Li said.

ENERGY COOPERATION

In the eyes of Jin Canrong, deputy dean of International Studies School at China's Renmin University, cooperation between China and the United States has great potential to tap in the energy sector. Energy reportedly is high on the agenda of the dialogue.

"As the two largest energy consumers in the world, it is useful for both sides to increase mutual understanding of each other's energy policies and priorities, and the dialogue will serve that purpose," Jin said in an interview with Xinhua.

Despite occasional frictions, the two countries have much in common on the issue of energy because both are major energy consumers and are determined to looking for new energy sources.

Jin's comments were echoed by Li, who believes bilateral cooperation would play a significant role in easing global energy shortage.

"Both countries are the two biggest energy consumers worldwide. They have huge potential in exploring new energy sources," Li said.

Li added that the coal industry is another field of cooperation as the United States, the second largest coal producer in the world, can help China improve its efficiency and safety in coal production and utilization.

ENHANCE MUTUAL UNDERSTANDING

Jin said Monday's debut of the dialogue mechanism would focus on clearing each other's misgivings and building trust and understanding.

"Through the dialogue, China and the United States can exchange information, clear misgivings and boost bilateral ties," Jin said.

Li also said the United States should understand China's concerns and avoid setting up new barriers for bilateral trade.

"During the past decade until 2006, China's exports had saved American consumers about 600 billion dollars and nearly 100 billion dollars alone in 2004 ... the United States is also a de facto beneficiary from the imbalanced trade with China," Li said.

"This should remind the United States that it will punish its friends, allies and even itself by setting up trade barriers against China," he said.

"Therefore, both sides should make the dialogue an opportunity to push bilateral cooperation forward and contribute to the recovery of the world economy," he said.