US to China: will work on deficit when recovery solid

WASHINGTON, May 19 (BestGrowthStock) – U.S. Treasury Secretary
Timothy Geithner will tell Chinese counterparts next week that
the United States intends to get its deficits down but only
after recovery is fully established, a Treasury official said
on Wednesday.

“We’re going to be very clear with the Chinese — because
we know that they have questions — that this administration
is committed to bringing down the fiscal deficit and the
government’s debt to a sustainable level, but we’re not going
to do that until recovery is fully established,” said David
Loevinger, Treasury’s senior coordinator for Chinese affairs.

Geithner will be participating in meetings of the Strategic
and Economic Dialogue in Beijing on Monday and Tuesday.

Loevinger said that getting recovery solidly under way
before turning to deficit reduction will be “the best thing for
China, it’s the best thing for the world, it’s the best thing
for the U.S.”

Investment Research

(Reporting by Glenn Somerville, Editing by Chizu Nomiyama)

US to China: will work on deficit when recovery solid