China urges U.S. to do all it can to tame crisis

By Glenn Somerville and Zhou Xin

BEIJING (Reuters) - China urged the United States on Thursday to spare no effort to stabilize its economy and financial markets to help avert a global recession.

Speaking at the start of a fifth meeting of the cabinet-level "Strategic Economic Dialogue" between the United States and China, Vice-Premier Wang Qishan said Beijing was doing its part by pursuing fast growth.

U.S. Treasury Secretary Henry Paulson, whose term in office is rapidly drawing to a close, praised China for the responsible role it was taking to boost a fading global economy.

U.S. officials told reporters later that China gave reassurances that it remained committed to reforming its currency mechanisms along market lines. Washington wants greater currency flexibility to lead to a rise in the yuan's value, something it regards as essential to shrink China's huge trade surpluses.

"There's been progress. China continues to reinforce to us that they remain committed to reform," a U.S. official told reporters. "By that I mean appreciation over time."

Chinese central bank governor Zhou Xioachuan expressed confidence that China could sustain growth and financial stability, an official told reporters.

But Zhou said policy makers needed to take "timely, effective and pre-emptive measures. "In particular they need to prepare for the worst," Jin Qi, head of the bank's international department, quoted Zhou as adding.

FAST GROWTH