The visiting US Treasury Secretary, Timothy Geithner, has delivered a speech at Peking University. Geithner stressed that China plays an important role in establishing a more balanced and stable economic order. He also says bilateral cooperation is vital for recovery and growth.

U.S. Treasury Secretary Timothy Geithner delivers a speech at Peking University in Beijing, capital of China, June 1, 2009. [Gao Xueyu/Xinhua]

This is Geithner's first visit to China since taking office.

The new Secretary values the China-US economic ties as much as his predecessors.

In the face of global economic difficulty, Geithner says cooperation is vital for laying a good foundation for future growth.

Timothy Geithner said, "A successful transition to a more balanced and stable global economy will require very substantial changes to economic policies and financial regulations around the world. But some of the most important of those changes will have to come in the US and China. How successful we are in Washington and Beijing will be critically important to the economic fortunes of the rest of the world. The effectiveness of the US policies will depend in part on China's, and the effectiveness of yours on ours. "

The Secretary says the necessary changes will come in different ways. Americans will have to increase their savings rate, and the fiscal deficit must be brought down. And for China, he thinks the priority is to expand domestic consumption.

International cooperation is another focus of the Secretary. He says it's just as important as addressing domestic challenges. He says the US will help to put in place a stronger global financial system and will fully support China to play a bigger role.

Timothy Geithner said, "As part of the process of reform, the US will fully support having China play a role in the principal cooperative arrangements that help shape the international system, a role that is commensurate with China's importance in the global economy. I believe that a greater role for China is necessary for China. It's necessary for the effectiveness of the international financial institutions themselves and for the world economy."

Geithner stressed that China and the US, individually and together, are important in the global economy and financial systems. Both sides agree that joint efforts should be made in a concerted way for common prosperity.

(CCTV June 2, 2009)