NEW YORK -- Americans should not fear China's growing economic clout, but rather see it as an opportunity that can benefit both China and the United States, if the two countries forge a successful strategic economic relationship in the years ahead, US Treasury Secretary Henry Paulson said.

"Frankly, China's continued economic growth is important to global economic growth, and positive for the United States," said Paulson during a Foreign Affair Magazine conference call on his new article, "A Strategic Economic Engagement."

The last decade has seen China emerge as a global economic powerhouse, with impressive growth rates averaging nearly 10 percent a year. Some economists say, by the middle of this century, China's economic output could match or possibly exceed that of the United States.

Paulson says Americans should not feel threatened by China's economic success.

"Some people thought China's economic success as a threat, somehow we need counter or contain, somehow their success is going to hurt the United States, I think these people are worried about the wrong thing," US Treasury Secretary Henry Paulson said.

Paulson's remarks were echoed in his new article published by Foreign Affair Magazine.  "I believe that engagement is the only path to success," Paulson writes. "The real concern should be that China stumbles, has problems along the way and that this hurts the global economy and our economy," he added in the teleconference.

The Secretary also called for more Chinese investment in the United States as he is trying to negotiate a bilateral investment treaty with China in the fifth US-China Strategic Economic Dialogue (SED).

"There's a lot of US investment in China... on the other hand there's very little investment that the Chinese have in the Untied States and we think it would be a positive for both of our countries to have them have more investment in the United States," he said.

Getting greater protection for investors on both countries would be a "milestone" and a "positive step" for bilateral relations, he said. "The highest vote of confidence anyone can give our economy is to make a long-term investment."

"The United States and China -- and, indeed, the international community -- shares a powerful interest in China's successful integration into the global economic system," said the treasury chief.

"The prosperity of both nations depends on the ability of each to achieve balanced economic growth, on stable and vibrant trade and financial regimes, on diverse and dependable energy sources, and on sustainable progress that protect human health and the environment," he concluded.