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Physical carrier sensing has been used as an effective way to avoid interference and exploit spatial reuse in wireless networks. In the meanwhile, the degree of the spatial reuse can be enhanced by adjusting transmit power to change carrier sensing range. This paper proposes a new algorithm with the joint control of transmit power and channel rate. In this algorithm, the transmitter first decides to use appropriate channel rate according to communication distance, and then adjusts its rate and transmit power adaptively based on the communication results. Simulation results show that, the proposed rate and power control algorithm yields higher throughout and decreases energy consumption effectively.