US to deal with deficits after recovery: Geithner

WASHINGTON: Treasury Secretary Timothy Geithner says he has reassured China that the United States will take steps to address rising budget deficits once the economic recovery is firmly in place.

China has huge investments in the United States and has worried it could be undermined by US budget deficits. Geithner says the Obama administration plans to reverse the spending of hundreds of billions of dollars devoted to stimulating the economy and propping up a teetering financial system.

Geithner spoke at a news conference Tuesday capping two-days of high-level talks between Chinese envoys and US officials.

Geithner says the Chinese agreed to take steps to increase domestic consumption of its products.