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Remarks by Vice Premier Wang Yang At the Closing Session and Press Conference of The Eighth Round of the China-US Strategic and Economic Dialogue

Beijing, 7 June 2016

Friends from the Press,

Good afternoon. Thanks to two days of hard and well-organized work, the Eighth Round of the China-US Strategic and Economic Dialogue has come to a successful conclusion. President Xi Jinping attended the opening ceremony and made important remarks. The Chinese team of the Economic Track has earnestly followed his instructions and conducted candid and in-depth communication with the US side on major economic topics concerning both countries and the whole world. As expected, we have not and cannot eliminate all differences, but still, we reached agreement on over 60 outcomes.

Both sides recognized the importance of structural reform to their sustained economic growth. While appropriately expanding aggregate demand, China will strengthen supply-side structural reform. The United States commits to increasing national saving as well as investment, particularly in infrastructure, fostering increased labor force participation rate and productivity, and putting government finances on a sustainable path over the medium term. In the process of normalizing its monetary policy, the US pledged to be sensitive to the effects of its policy on the international financial system, and conduct policy in a transparent and predictable manner. Both sides recognized that excess capacity in steel and other industries is a global issue resulting from a weak global economic recovery and depressed market demand, thus requiring collective responses. It should be resolved through rule of law, market mechanisms and appropriate policy measures.

Both sides agreed to push the Bilateral Investment Treaty (BIT) negotiations forward expeditiously and exchange revised and improved negative list offers by mid-June, with a view toward reaching a mutually beneficial and high-standard treaty at an early date. Both sides reiterated their commitments to continue detailed and in-depth discussion of export control issues within the China-US High Technology and Strategic Trade Working Group. The two sides agreed to strengthen communication and enhance mutual trust to work towards reciprocal recognition of bilateral airworthiness on transport category airplanes. And the two sides will continue to promote cooperation at the subnational level on trade and investment, and further step up communication and cooperation in infrastructure development, protection of intellectual property rights, agriculture, small and medium enterprises, research, development and innovation of clean energy, as well as economic policy research.

The two countries have made major progress in financial cooperation. The two sides will strengthen cooperation in Renminbi (RMB) currency trading and clearing in the US. China agreed to extend a 250 billion RMB Qualified Foreign Institutional Investor (RQFII) quota to the US, and designate one qualified bank from China and another from the US as RMB clearing banks. Both sides welcome the ongoing cooperation among trading platforms, so as to enhance connection of their financial markets and products. Financial regulators of the two sides stand ready to advance information sharing and cross-border enforcement cooperation. The two sides agreed to step up exchanges and cooperation in supervising anti-money laundering, countering the financing of terrorism, and fighting counterfeiting currency. We also agreed to cooperate on green finance and accelerate the development of a Green Building Efficiency Fund. Both sides committed to explore ways to improve the working mechanism of the International Working Group on Export Credits (IWG) and make greater progress towards achieving new international guidelines for official export credit support.

Secretary Lew wrote a couple of months ago that "the relationship between the United States and China, the world's two largest economies, is uniquely important to advancing shared prosperity, maintaining a constructive global economic order, and making progress on existential challenges... China's rotation as president of the G20 in 2016 further underscores the importance of the relationship between the two countries, offering new opportunities to work together to strengthen the global economy." These words have been well reflected in this round of dialogue. The US once again expressed support for China's presidency to host a successful G20 Hangzhou Summit. The two sides commended the outcomes of the Shanghai and Washington G20 Finance Ministers and Central Bank Governors Meeting, agreed to work closely for more outcomes of the G20 financial agenda and promote strong, sustainable and balanced growth of the global economy. The two sides will complete the fossil fuel subsidies peer review under the G20 framework before the G20 Hangzhou Summit. Both countries reaffirmed that the distribution of IMF quotas should continue to shift towards dynamic emerging markets and developing countries. And both countries supported the IMF's examination of the possible broader use of the SDR.

As co-chairs of the Economic Track, Secretary Lew and I enjoy ever closer communication and more efficient coordination. Outcomes of the Economic Track have helped the two economies overcome the deep-seated impact of the global financial crisis, effectively promoted the steady growth of China-US relations, and injected positive energy to world economic recovery. I am deeply honored to have Secretary Lew as my dialogue counterpart and cooperation partner, and greatly admire the dedication of the two teams of the Economic Track.

Last but not least, I want to thank the journalists for covering this round of dialogue. You have not only recorded the economic dialogue between China and the US, but have also contributed to China-US economic relations. The sound development of China-US relations relies on your effort. Thank you.

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