Chinese President Hu Jintao shakes hand with US Vice-President Joe Biden before their meeting at the Great Hall of the People in Beijing August 19, 2011.[Photo/Xinhua]

Vice-President Xi says Chinese economy will avoid hard landing

BEIJING - China's leaders on Friday expressed confidence in the fundamentals of the US economy and its prospects as the two countries reaffirmed their commitment to a strong and enduring relationship.

In the opening remarks of a roundtable discussion with US and Chinese political and business leaders earlier in the day, Vice-President Xi Jinping said China views the US economy as "highly resilient, and it has a strong capacity to repair itself. We believe that the US economy will achieve even better development as it rises to its challenges."

He said China would seek a "proactive fiscal and monetary policy" to manage growth and rein in inflation.

"We are confident that we are able to maintain steady and fast economic growth," Xi said. "There will never be a so-called hard landing for the Chinese economy."

Xi also urged the US side to lift its restriction on the export of high-tech products to China and take substantive measures at an early date in offering a fair environment for Chinese enterprises to invest in the United States.

During the discussion, US Vice-President Joe Biden said his country welcomed more Chinese direct investment.

Biden also hinted at an announcement of $1 billion worth of commercial deals between companies in the two countries during his visit to China. No details were available by press time.

During their respective meetings with Biden, both President Hu Jintao and Premier Wen Jiabao said China will unswervingly push forward mutually beneficial economic cooperation with the US to enhance market confidence and stabilize the international financial system.

Wen said he is "fully confident" that the US economy could overcome difficulties and return to a track of healthy growth as it possesses advanced science and technology, high-quality talent and a strong economic foundation.

"It is important that you've sent a very clear message to the Chinese public that the US will keep its word and obligations with regard to its government debt, that is, to preserve the integrity of its public debt, including its safety, liquidity and inflation-resistance," Wen told his guest.

China is the largest foreign holder of US debt.

Biden said the US will ensure the safety of its debt not only for China.

"Very sincerely, I want to make clear you have nothing to worry about," Biden told Wen.

The premier said he appreciated the US commitment to address its current debt and budget problems.

"China and the US have many occasions to sign a contract. This choice of timing shows the friendly atmosphere of this visit," said Shi Yinhong, a professor of US studies at Renmin University of China.

"Blaming each other won't solve any problems. China can hardly get rid of concerns over its large holding of US debt, but it's necessary for both sides to take a positive view toward the economic difficulties," Shi added.

Yuan Peng, director of the Institute of American Studies under the China Institutes of Contemporary International Relations, told People's Daily that from an international perspective, the US debt crisis has seriously jeopardized the world economy. China has maintained close economic ties with the US, and both countries have practical needs to coordinate interests through dialogue.

Biden began his six-day visit to China on Wednesday.

The visit has been dominated by discussion of global economic concerns and the turbulence in stock markets.

On Saturday, Biden will fly to Southwest China's Sichuan province, where he is going to deliver a speech at Sichuan University and visit the newly constructed buildings in the earthquake-hit area of Dujiangyan.

"China will show its miracle that was made within three years, encouraging the US and the rest of the world to unite and work hard to overcome difficulties," said Men Jing, professor on international relations with the Belgium-based College of Europe, referring to the US and Europe facing the risk of a double dip recession.

Ma Liyao, Zhao Shengnan and Fu Jing contributed to this story.