The next US president should fully recognize China's emergence as a global economic leader, and take US-China relations to the next level through more engagement, US Treasury Secretary Henry Paulson said in New York on Tuesday.

Addressing the annual gala of the National Committee on US-China Relations (NCUSCR) in New York, Paulson advised the next US president to start from the perspective that China will continue to play a key role in the world economy.

US Secretary of Treasury Henry Paulson leaves the New York Stock Exchange October 21, 2008. [Agencies]

"We must recognize that China's growth is an opportunity for US companies and consumers, for our producers, exporters and investors," he said, "A stable, prosperous and peaceful China is in the best interest of the Chinese people, the American people and the rest of the world."

Paulson appreciated that China has been working closely with the US government in response to the current world financial crisis.

"We welcome Chinese Premier Wen's statement that China will play a constructive and cooperative role in global efforts to deal with the current financial market turmoil," said the secretary.

He reiterated that the only path to success with China is through engagement, with the Strategic Economic Dialogue (SED) being an important facility.

Reviewing achievements of the SED talks, which was initiated by Chinese President Hu Jintao and US President George W. Bush in 2006, Paulson said that a strong foundation has been built for this dialogue by focusing on policy areas in which China's reform agenda and US interests intersect.

He hopes that the next US president will expand on the SED to take US-China relations to the next level.

Established in 1966, the NCUSCR is a private, non-partisan and non-profit organization. In 1972, it sponsored the historic visit of China's ping-pong team to the United States.

(Xinhua News Agency October 22, 2008)