BEIJING — China wants to convert some of its mountain of U.S.government debt into investment in renovating American roads and subways, thecommerce minister said Friday.

Speaking to a business group, Chen Deming said China wants closerco-operation with the United States in infrastructure, clean energy andtechnology.

Such investments would tie China more closely to Western economies and mighthelp defuse fears Beijing will use its $3.2-trillion in foreign reserves -- some$1.15-trillion of that in Treasury and other U.S. government debt -- as apolitical weapon.

“We hope to achieve cooperation in the area of infrastructure,” Chen toldmembers of the American Chamber of Commerce in China.

Chen said he was amazed at the high quality of American subways and otherinfrastructure when he visited 20 years ago but many roads, railways and portstoday need renovation.

“China is willing to turn some of our holdings of your debt into investmentin the United States, hoping to create jobs for the United States,” he said.

Also this week, the chairman of China's sovereign wealth fund said it wantsto invest in projects to improve British roads and infrastructure. He said thatwould help to boost feeble global economic growth.

Beijing is encouraging Chinese companies to investment more abroad to reducethe country's reliance on exports and investment. It has sent trade andinvestment delegations to the United States, Europe and elsewhere to look foropportunities.

Mr. Chen said Beijing wants to see Chinese and U.S. companies cooperate moreclosely on clean energy, environmental and energy-saving technology, informationtechnology biotechnology, pharmaceuticals and medical devices.

The minister acknowledged disagreements between Beijing and Washington overglobal trade talks, trade in environmental technology and other areas but saidthe two governments had more areas of common interest.

Mr. Chen repeated Beijing's longstanding appeal to Washington to relaxrestrictions on exports of “dual use” technologies with possible weaponsapplications.

“We hope Chinese-U.S. trade will continue to grow and the imbalance willshrink. But that takes both of us to achieve,” he said.

China's economic growth should be above 9 per cent next year despite“difficulties and obstacles” in the global economy that are battering consumerdemand, Mr. Chen said. He noted that China also faces domestic problemsincluding inflation.

Beijing eased lending curbs this week in an effort to spur business growth,reversing course after spending the past two years trying to cool an overheatedeconomy with interest rate hikes and investment controls.

“I can assure you the Chinese economy will have a slight slowdown butnonetheless it will enjoy stable and sound development,” Mr. Chen said.