BEIJING - CHINESE President Hu Jintao on Tuesday gave visiting US Treasury Secretary Timothy Geithner his stamp of approval, as Beijing pledged to work with Washington to battle the global financial crisis.

Mr Geithner met with Hu and Prime Minister Wen Jiabao on the final day of a whirlwind visit aimed at winning Chinese cooperation on tackling the downturn, and reassuring Beijing that its massive investment in US bonds is safe.

State media however expressed opposition to Beijing's policy of buying massive amounts of US debt, saying the value of China's assets could be battered as the financial crisis continues. And according to an online poll, 87 per cent of respondents considered China's dollar assets unsafe, the Global Times reported. ... more

The US treasury secretary seemed to have accomplished his mission, with Mr Hu praising his efforts and Washington announcing that the first-ever China-US strategic and economic dialogue would be held in the US capital in late July.

'You have established good working relationships with your Chinese colleagues and you are committed to enhancing China-US economic cooperation in tackling the international financial crisis,' Mr Hu said during their talks.

'I'm confident that as treasury secretary you will certainly make positive contributions to advancing China-US economic and financial cooperation and the growth of the China-US relationship.'

China has recently been trying to move into the limelight of global politics and place itself at the head table of world powers - and its purchase of almost US$800 billion (S$1.15 trillion) in US assets gives it a strong hand.

As the largest holder of US Treasury bills, which are crucial to funding Washington's multi-trillion-dollar recovery plans, China has expressed concerns that its investment is at risk.

But Mr Geithner has sought during his visit to reassure Chinese leaders, saying their money is 'very safe' despite a ballooning US budget deficit, which he pledged to cut.

'Because of the strengths of the actions put in place by your government and by President (Barack) Obama we're starting to see some early signs of stabilisation and recovery in the global economy,' Mr Geithner told Mr Hu.

Earlier, he told Chinese state television: 'I've actually found a lot of confidence here in China, justifiable confidence, in the strength and resilience and dynamism of the American economy.' -- AFP

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