【正文】 benchmarks is critically important to demonstrating that we are making progress in achieving our long term objectives. I believe that we are making progress and we are able to point to steps that are enhancing and transforming our economic relationship in mutually beneficial ways. Three brief examples illustrate my point: civil aviation, energy and the environment, and financial services.In May, we announced a new air services agreement that will make it easier, cheaper, and more convenient to fly people and to ship goods across the Pacific. Not only will this agreement stimulate an estimated $5 billion in new business over the next several years, the new routes will double passenger traffic by 2012 and allow full air cargo services by 2011. Perhaps as early as April 2008, there will be the first nonstop flight between Atlanta and Shanghai, the first from America39。s southeast for a . airline. The benefits of the civil aviation accord are many, including more merce, greater cultural exchanges, and enhanced understanding. We have also collaborated with China on a series of policies to help promote energy conservation and environmental protection. Those specific agreements foster demand for the development and deployment of clean and efficient, nextgeneration energy technology. This, in turn, will create a future in which two of the largest economies in the world bee examples of bilateral cooperation towards sustainable development. The SED has made consistent strides to further develop China39。s capital markets. As a result of our deliberations, the New York Stock Exchange and NASDAQ will open offices in China. China has also removed a barrier to the entry of new foreign securities firms, and will expand the scope of business open to foreigninvested securities firms. These actions do not only expand the opportunities for international financial services firms. By allowing greater financial flows, they will help China move more quickly to a fully marketdetermined exchange rate. Competitive and efficient capital markets are also key to balanced, sustainable and higher quality economic growth ?a critical Chinese goal over the next two decades. In addition to the areas of positive cooperation, our enhanced dialogue means we must confront problems frankly and honestly ?and often rapidly. Recent and repeated reports of tainted food and product imports are causing fear and uncertainty in American consumers and harming the Made in China brand here in the United States. The effectiveness with which China manages these safety issues will have long term implications for trade relations, the integration of China into the global trading system, and the sustainability of China39。s economic growth trajectory. We are actively working together to enhance the safety of products ing from China and to protect the American consumer. We also need to make sure that policymakers in both countries are focused on sciencebased safety decisions, not protectionism or retaliation. Towards a New Future for Bilateral Economic RelationsPresident Bush and President Hu have set a positive agenda for strengthening our economic relationship. The SED is a core part of that agenda because it is longterm in its vision, prehensive in its scope, and immediate in its ability to deal with the most sensitive bilateral economic tensions. I congratulate the Chinese on the successful conclusion of their 17th Party Congress and related events. My colleagues and I look forward to developing constructive and productive relationships with the new members of Chinese leadership team. In his political report to the 17th Party Congress last week, President Hu emphasized the dual goals of continuing market reform and global integration, while simultaneously working to alleviate the negative domestic consequences of rapid economic growth. Our next meeting of the SED in December will discuss a number of these objectives. Specifically, we will focus on the integrity of trade, balanced economic development, energy conservation, financial sector reform, environmental sustainability, and advancing bilateral investment.The economic and geopolitical landscape of the 21st century will be greatly influenced by the way in which the United States and China work together. That emerging future requires a distinct vision and effective mechanisms to achieve it. The SED has allowed both the United States and China to begin to write the next chapter of our strategic economic relationship. 12