Paulson: China must cultivate domestic demand

US Treasury Secretary Henry Paulson called on China to rely less on exports and more on domestic demand for the sake of its own interests as well as those of the rest of the world. Speaking to the Financial Times ahead of next week's US-China Strategic Economic Dialogue in Beijing, Paulson said: "China has an interest in the success of the global economy and we have an interest in their continued growth." He suggested that the tightening taking place in developed economies would "increase the focus" on China's responsibilities. Analysts are increasingly looking to China to support global growth in the event of a slowdown in the US and Europe. Paulson stressed that America's priorities at the talks would remain the same as before – pushing for faster structural reforms, including currency liberalization, in China to maintain growth while becoming more dependent on domestic demand.