China's economic reforms should rely more on innovation by private companies and must allow for greater foreign competition, U.S. Treasury Secretary Timothy Geithner said in Beijing Thursday. Speaking at the opening ceremony of the 2012 Strategic and Economic Dialogue between the world's two largest economic powers, Geithner noted China was currently exploring its "next frontier" of economic reforms, recognizing that future growth will require another fundamental shift in policy. "These new reforms recognize the new reality that China must rely more on domestic consumption rather than exports, and more on innovation by private companies rather than capacity expansion by state-owned enterprises, with an economy more open to competition from foreign firms, and with a more modern financial system," he said.

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