Chinese premier says China, US must tread with care

Chinese Premier Li Keqiang AP FILE PHOTO

BEIJING—Premier Li Keqiang on Tuesday said that China and the US have to handle disagreements and friction carefully for mutual benefit and regional peace and stability.

He made the remarks during a meeting with former US treasury secretary Timothy Geithner, a close adviser to US President Barack Obama.

Obama arrived in the Philippines on Monday, the final stop on his four-country Asian tour. Hours before his visit, the two countries signed a defense agreement, giving US forces temporary access to selected bases and allowing the US to base fighter jets and ships in the Philippines.

Li told Geithner that China and the US should stick to a vision of “no conflict, no confrontation, mutual respect, and win-win cooperation” that their leaders had agreed to in The Hague.

Answering questions about the relationship between reform and economic expansion, Li said China’s deepened reform and opening-up will broaden bilateral trade and economic cooperation.

The Chinese economy still has great resilience, although it is also challenged by unbalanced rural-urban development and a shortage of energy resources, Li said.

Stating that reform is the driving force for economic expansion, Li said the government will step up its efforts on reform, which he believes can eventually solve the challenges facing China.

Since taking office in March 2013, Li has spearheaded many reforms, such as streamlining administration and tax reduction for small and medium-sized enterprises, hoping to give the market a bigger say in allocating resources.

Cutting bureaucracy for businesses, along with fiscal and tax reform are the two primary tasks that Li has promised to push through this year.

Geithner, who is spending two days meeting a team of officials from the Chinese government, said the two countries should strengthen communication and cooperation.

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