China and the United States should adhere to dialogue and cooperation and properly meet their differences, Commerce Minister Chen Deming of the PRC wrote in a signed article on the ministry\’s Web site today.
The article says differing opinions about the extensive economic and trade cooperation between China and the United States are no surprise. The two nations have established smooth channels of communication on economic and trade issues, especially such important mechanisms as Sino-U.S. Strategic Economic Dialogue and China-U.S. Joint Commission on Commerce and Trade. We can take full advantage of these platforms to discuss a variety of issues frankly and sincerely, the article said.
Recently, there have been some disruptions in Sino-U.S. trade relations. Some people think that the United States is at a disadvantage in its trade with China. It is a common belief in the United States that China undervalues the RMB to obtain a competitive edge and seek trade surplus.
Chen Deming believes that Sino-US trade imbalance is a long story caused by complex reasons and is a result of international industry division under the context of economic globalization. We should analyze it rationally with a comprehensive and objective perspective. Moreover, United State\’s restrictions on its exports to China as well as the role of dollar as a major international currency, among other factors, have all exacerbated the imbalance of bilateral trade.
"Changing the RMB exchange rate can not address the Sino-US trade imbalance." Chen Deming said. Both theory and practice have shown that a country\’s currency appreciation has only limited effect on trade balance. From 2005 to 2008, the cumulative appreciation of the RMB against the U.S. dollar totaled over 21 percent, while over the same period, the U.S. trade deficit with China saw an average annual growth of more than 21 percent, the largest and fastest growth in history. In 2009 , the exchange rate of RMB to U.S. dollar remained stable, while the proportion of U.S. trade deficit in its GDP decreased from 5.7 percent in 2008 to 3.5 percent, its trade deficit with China falling by more than 16 percent..
Chen Deming said both China and the United States should take constructive and positive actions to effectively solve the problem.
In 2009, China\’s trade surplus plummeted 100 billion U.S. dollars. In 2009, U.S. exports fell by 17 percent of the overall, while exports to China are basically the same. During the first two months of 2010, China\’s trade surplus continued to be significantly reduced by 50 percent, and an estimated trade deficit will occur in March. According to U.S. statistics, U.S. exports in January this year are up more than 18 percent, but exports to China increased by nearly 65 percent.
"There is no doubt that China will continue to implement import promotion policies, but also require the exporter to China not to implement discriminatory export control policies. Together this provides the impetus to promote world economic growth," Chen Deming said.
He said that in settling the Sino-U.S. trade imbalance, a negative pressure on China\’s exports does not help. He said China is willing to act together with the United States and open up new areas of cooperation in support of the U.S. enterprises to expand exports to China, to include the U.S.-funded enterprises, including foreign-funded enterprises in China to create a more fair and excellent investment environment, but also hopes the United States can maintain a spirit of openness and healthy development of Sino-U.S. economic and trade cooperation.
By People\’sDaily Online
http://www.minamik.com
Comments (0) 
