Treasury Secretary Timothy Geithner has assured the Chinese leaders that the Obama administration will certainly reduce its budget deficit when it will be able to ensure a safe flow of the growth.

Addressing 30 middle-aged cadres at the Central Party School, Geithner said that it is looking forward to control the deficit.

"The basic strategy is to make sure that our economy is growing, and then institute long-term reforms, and restore the basic discipline to the budget process that we abandoned in the previous decade," Geithner said.

China holds nearly $895 billion of U. S. treasury debt. It has been raising concern over the heavy amount of the debt.

Geithner will be leaving for London now as the Strategic and Economic Dialogue with China has been over.

He said that he is pretty confident about Europe being able to resolve the issues and meet the challenges which have made way in the budgeting sessions.

He suggested that the European Union had set out a budget restraint program that failed to include a mechanism for dealing with imbalances between member countries. The European leaders are identifying these problems and acting sincerely.

Geithner has had a tough time throughout his visit to China trying to convince the Chinese authorities that US is on the track of budget discipline.