China and the US have to work out their differences as the two countries enter the 40th anniversary year of the establishment of diplomatic relations, said Maurice Greenberg, the chairman and CEO of Starr Companies.

"The relationship between the US and China potentially is the most important relationship in the world, and it's up to both countries to work out the differences that they currently have, Greenberg said in an interview with China Daily on Thursday at his financial services company's office in New York.

Greenberg was one of 10 foreigners awarded the China reform friendship medal by President Xi Jinping last month.

"China and the US as close allies [makes for] a very safe world; China and the US not [being] close allies is a different kind of world," Greenberg said. "It's in everybody's interest in both countries that this be resolved."

Addressing the differences will build confidence on both sides and would be a boost for the two economies, he said.

"Apple announced that their [revenue would be] down for the quarter — that's the first time it happened, and it happened because their sales in China have slowed down. So everybody suffers," said Greenberg.

"There are many American companies doing business in China, and many Chinese companies do business in the US now," he said.

"My company just celebrated a 100th anniversary in China about a month ago, so to me, the two countries have to be very close allies. Our relationship should be one that's friendly, cooperative, and both countries (should) invest in each other's country," Greenberg said.

Greenberg joined Starr as vice-president in 1960, consolidated a number of insurers into the company and formed the franchise into American International Group (AIG), which later became the largest insurance and financial services company in the world.

Greenberg's relationship with China started in 1975 — 15 years after he joined the Starr Companies — when he became the first executive at the company to visit China since the founding of the People's Republic.

That visit led to a partnership between Starr Companies and the People's Insurance Co of China, and Greenberg has traveled to China every year since.

In 1992, his company became the first foreign company to receive a wholly owned life insurance license in China, helping to open up the country's financial services industry to the US.

"Will they (the differences) be resolved? They have to be! It's in everybody's interest that this does happen," Greenberg added.

He said he agrees that business exchanges between China and the US can help stabilize bilateral relations, but the governments have got to resolve the issues.

"The business community can speak out, but they don't have the power to change it, so the governments have to do that," he said, adding that he hopes that by the end of March, the two governments can reach a deal and resolve their differences.

Greenberg said that it's great that US President Donald Trump and President Xi reached a truce in Argentina on Dec 1 and maintain a good relationship.

"But now they have to implement what they talk about," he said.

Greenberg said he would look to the young generation to improve trust and enhance understanding, as education exchange between the two nations is flourishing.

"I have two granddaughters at Yale University, and one of them is graduating next year," Greenberg said. "She wants to go to Tsinghua University for at least a year and learn Chinese as well."

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