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(Adds comments by Wang Qishan, quotes by Paulson)
By Glenn Somerville and Zhou Xin
BEIJING, Dec 4 (Reuters) - China urged the United States on Thursday to spare no effort to stabilise 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.
"The priority is...to restore investor confidence as quickly as possible, to prevent the financial crisis from getting worse and to avoid a global economic recession," Wang said at the start of two days of talks.
With U.S. Treasury Secretary Henry Paulson looking on, he said Beijing backed U.S. initiatives to steady world markets and had acted responsibly to try to achieve the same goal.
But Wang urged Washington in return to heed Beijing's needs.
"I hope the United States will take all necessary measures to stabilise its economy and financial markets as soon as possible and to ensure the security of Chinese investments and interests in the United States," he said.
It was unclear to what Wang was referring. The two governments are in the midst of what Paulson called "productive" negotiations on a new bilateral investment treaty. But Wang's comments may also have reflected long-standing concerns in some Chinese circles about Washington's stewardship of the dollar and a constant debate among policy advisers over whether China should add to its hefty U.S. debt holdings.
Beijing holds more than 60 percent of its $2 trillion of reserves in dollar assets, with a big chunk in debt issued by the Treasury and troubled mortgage lenders Fannie Mae and Freddie Mac, which have effectively been taken over by the government.
Senior officials have reiterated that it is in China's self-interest to keep investing in U.S. government securities.
But critics worry that, with Washington pursuing aggressive fiscal and monetary expansion, the value of China's bond holdings will eventually be eroded.
Paulson, who leaves office next month, praised China for its role in trying to tamp down global economic turbulence.
"International cooperation and coordination have been robust, and we appreciate the responsible role China has played during the turmoil," he said.
THANK YOU, CHINA
China has launched a 4 trillion yuan ($586 billion) stimulus package and slashed interest rates to boost domestic demand and take up slack in the economy left by weakening exports.
"China will strive to boost domestic demand, change its economic growth model and maintain stable and fast economic growth, which in itself is a huge contribution to the stable financial and economic development of the world," Wang said.
Neither Paulson nor Wang mentioned exchange rates in their opening remarks.
China has raised eyebrows this week by letting the yuan depreciate modestly against the dollar, fanning market speculation that it is ready to face down U.S. displeasure to lend a helping hand to its beleaguered exporters.
Paulson said the two days of talks would focus on the building blocks for an enduring bilateral economic partnership.
For the first time, he said, the dialogue would focus on how the two governments can work together through international forums to strengthen the global economic system.
"We will continue to work on strategies for managing macroeconomic risks and promoting balanced growth, on open investment and trade policies, including strengthening product, food and drug safety; on our respective roles in international institutions and to strengthen cooperation in energy and the environment," Paulson said.
He said he expected to reach substantive agreements in five areas: electricity generation, transportation, clean water, clean air, and protecting wetlands and other natural areas. (Reporting by Glenn Somerville and Zhou Xin; Writing by Alan Wheatley; Editing by Ken Wills)