LEAD: China, US promise joint action on global economy

Jan 11, 2012, 7:32 GMT

Beijing - US Treasury Secretary Timothy Geithner and top Chinese officials on Wednesday promised to cooperate in tackling global economic problems.

'I look forward to expanding our exports to China and expanding cooperation on the great range of economic and strategic issues we face around the globe,' state media quoted Geithner as saying during talks with Chinese Vice President Xi Jinping.

'Our top priority now is economic growth and recovery in the US and around the world,' Geithner said.

Xi, who is expected to be confirmed as China's next leader later this year, said Geithner's visit was 'significant for the stability and development of China-US economic relations.'

The Treasury Department said Geithner's talks would also focus on increasing international pressure on Iran amid growing worries about its nuclear programme. But there was no immediate confirmation from either side that they had discussed Iran.

US Secretary of State Hillary Rodham Clinton late Tuesday condemned Iran's decision to begin uranium enrichment at its Qom facility, saying the move breached UN sanctions and took it 'a significant step closer to having the capability to produce weapons-grade highly enriched uranium.'

The China Daily newspaper on Wednesday quoted Foreign Ministry official Chen Xiaodong as saying China opposed new US sanctions against Iran and favoured the resumption of international dialogue on its nuclear programme.

'We prefer negotiation and dialogue in resolving conflict between countries,' Chen said.

'We oppose the use of military force against Iran We also oppose some countries who unilaterally impose sanctions on Iran.'

State media reports said the two sides agreed Tuesday to 'enhance cooperation to advance global economic recovery.'

Cooperation between the world's two largest economies is vital in the face of a 'very complex and grim' global outlook, Vice Premier Wang Qishan was quoted as telling Geithner.

China wanted to expand cooperation in trade, investment, finance and infrastructure to 'spur the economy, increase jobs, and create more benefits for the people of the two nations,' Wang said.

Geithner was scheduled to meet Premier Wen Jiabao later Wednesday before travelling to Japan.

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