By intern researchers Julian Gewirtz and Lige Shao, and staff reporter Li Zengxin

(Caijing.com.cn) On his first visit to China as an Obama cabinet member, U.S. Treasury Secretary Timothy Geithner emphasized cooperation between the two countries as essential for recovery from the global financial crisis.

Geithner planned to conclude his two-day visit Tuesday after meetings with high-level Chinese officials including President Hu Jintao and Premier Wen Jiabao.

In a speech Monday at Peking University, as well as during remarks to Chinese reporters in Washington before his departure to Beijing, Geithner said the visit offered an opportunity to strengthen bilateral communications about the measures each side has taken to combat the global recession.

Whatever China and the United States "do has a direct impact on the stability and strength of the international economic system," he stressed at the university.

Geithner

In Washington, Geithner told Chinese journalists that "China's response to the crisis has been exemplary. I have a great admiration for the judgments the Chinese authorities have made, not just in this crisis," but also in the past several years.

Coupled with this praise was encouragement for China to make a transition from an export-based to a domestic demand-driven economy, which Geithner said would provide a "foundation for more balanced recovery" and a stronger global economy.

For the United States, Geithner said he thinks laying the groundwork for a stable financial system means investing in a more productive economy by improving education, infrastructure, energy efficiency and health care, while putting in place a strong regulatory framework that reduces the violent swings that characterized American markets during the crisis.

At the same time, Geithner reiterated his commitment to a "strong dollar" and lowering the U.S. government's fiscal deficit in the medium term, pointing to last year's US$ 288 billion bilateral trade imbalance favoring China.

At the university, a student asked Geithner about the safety of China's holdings in the United States. "Chinese financial assets are very safe," he replied, reiterating comments made by President Barack Obama and other U.S. officials in recent months. China is the largest holder of U.S. government debt.

The trip paves the way for the upcoming Strategic Economic Dialogue -- bilateral talks that presidents Obama and Hu confirmed in April during a G-20 meeting in London. Geithner plans to lead his country's contribution to the dialogue on the economic front, while U.S. Secretary of State Hillary Clinton is in charge of the strategic front.

Meanwhile, Geithner announced Monday several appointments for dialogue-related positions. David Loevinger, currently the treasury department's permanent China representative, was picked to serve as executive secretary and senior coordinator for the dialogue and China Affairs. David Dollar, China director at the World Bank, was named U.S. economic and financial emissary to China.

Geithner's visit followed a February visit by Clinton, while Obama is expected to visit China later this year.