Beijing: Seeking to defuse fears that it might use its massive USD 3.2 trillion in foreign reserves as a "political weapon", China on Sunday said it is willing to turn some of its holdings of US debt into investment in America to improve its infrastructure.

"China is willing to turn some of our holdings of your debt into investment in the United States, hoping to create jobs for the United States," Chinese Commerce Minister Chen Deming said.

Such investments would tie China more closely to Western economies and might help defuse their fears China might use its USD 3.2 trillion in foreign reserves as a "political weapon."

China has about USD 1.15 trillion of Treasury and other US government debt. Beijing now wants to invest its over USD 3.2 trillion of US debt into renovating America's ageing infrastructure.

However, it has also asked Washington to relax restrictions on exports of dual use technologies to increase US exports to the country.

Chen said his country wants closer cooperation with the US in infrastructure, clean energy and technology.

"We hope to achieve cooperation in the area of infrastructure," Chen told members of the American Chamber of Commerce in China observing that much American famed infrastructure like railways and port needed renovation.

Chen said China wants to see Chinese and US companies cooperate more closely on clean energy, environmental and energy-saving technology, information technology, biotechnology, pharmaceuticals and medical devices.

Acknowledging disagreements between the two countries over global trade talks on trade in environmental technology and other areas, Chen said the two governments had more areas of common interest.

Chen repeated China's long standing appeal to the US to relax restrictions on exports of "dual use" technologies with possible weapons applications.

"We hope Chinese-US trade will continue to grow and the imbalance will shrink. But that takes both of us to achieve," he said.

In an article published on Saturday, Chen wrote that China will further open its markets but under its own initiative.

The article came as China nears the 10-year anniversary of its joining the World Trade Organisation on December 11, 2001.

China will further expand market access for foreign investors, optimise tariff structure and promote more balanced trade, Chen wrote.

He said the process will be accelerated for overseas capital to get into areas like finance, health care, education, tourism and services for the old.

"China has achieved great success in the past decade thanks to being a member of the WTO," Chen said.

"It should be partly owed to the WTO system which is stable, transparent, predictable and non-discriminating."    

In the past 10 years, China's exports increased 4.9 times from 2001, and imports jumped 4.7 times, while foreign direct investment in China was ranked tops among developing countries.

All this helped China maintain a rapid growth rate and become the world's second-largest economy last year, he said.

(Agencies)