U.S. Treasury Secretary Geithner says the global recession seems to be losing force and the financial system is "starting to heal."

Speaking at Peking University Monday, he said it will be critical for the U.S. and China to implement major economic reforms to put the world on a stronger footing.

China is america's biggest creditor, holding billions of dollars in U.S treasury securities.

Geithner's been trying to reassure Chinese officials their country's financial assets are safe and that the Obama administration is committed to attacking soaring budget deficits in the future.