Dallas Federal Reserve President Richard Fisher said on Tuesday China would not do anything to harm U.S. interests such as dumping Treasuries, adding that solid capital returns support the dollar's attractiveness.

Fisher, who was headed to Beijing, soundly rejected the view that China can decouple economically from developed countries such as the United States and described the relationship between the two powerhouses as symbiotic.

China cannot succeed if the U.S. does not succeed, he said after a speech sponsored by the Asia Society, noting that while China owns a lot of U.S. Treasuries its economy is still dependent on U.S. consumer spending.

Recent comments from Chinese public officials have suggested Beijing is uncomfortable with the Fed's rapid expansion of its balance sheet. Last month, Premier Wen Jiabao said he was worried about the country's holdings of some 70 percent of the $2 trillion in foreign reserves and asked for a guarantee of safety for Chinese assets.

Fisher, who was answering questions after delivering a speech similar to one given in Tokyo last week, also said that he sees a strong case in favor of the dollar due to stronger capital returns in the United States compared with many other developed markets.

If indeed the U.S. economy is one of the first to recover, then money will flow where the best returns are offered, Fisher said.

(Reporting by Kevin Plumberg)

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