US Sees Progress in Economy Talks with China

25 May 2010

US Treasury Secretary Timothy Geithner speaks during a news conference with U.S. Secretary of State Hillary Rodham Clinton (not shown) at a hotel in Beijing, China, 25 May 2010

U.S. Treasury Secretary Timothy Geithner says differences remain, but the United States and China made progress in high-level talks this week in Beijing.

U.S. Treasury Secretary Timothy Geithner says China has taken steps to modify a controversial policy that was a source of growing concern among U.S. and other international businesses, and a key issue American officials raised during the Strategic and Economic Dialogue.

Business leaders have complained a new Chinese policy named "indigenous innovation" makes it difficult for foreign companies to compete in the country. The policy gives advantages to companies bidding for government contracts that conduct their research and development in China and patent their innovations here.

"And we welcome the progress we achieved to provide a more level playing field for American firms exporting to China and operating in China," said Geithner.

Geithner said officials from both countries would be holding a series of talks to address remaining concerns in the coming weeks and months.

He also welcomed China's commitment to submit a revised offer to join a World Trade Organization agreement by July that sets standards for international access to government contracts. He welcomed its commitments to reduce barriers to foreign investment in services, high-tech goods, energy saving products and high-end manufacturing.