CHINA / National
Minister Bo: Deficit not pursuit for China-US trade
(Xinhua)
Updated: 2006-11-13 14:12
China does not pursue a large trade deficit with the United States,
instead it will make efforts to realize a trade balance, said Minister of
Commerce Bo Xilai on Monday.
Bo made the remarks in talks with visiting US Secretary of Commerce
Carlos Gutierrez, who is heading a US delegation, including 25
entrepreneurs.
US Commerce Secretary Carlos Gutierrez started a five-day visit to China
on Monday, focusing on export opportunities for U.S.-based enterprises
and bilateral trade issues.
Gutierrez is accompanied by a "high-powered mission" consisting of 25 big
firms, including companies already operating in China such as Lucent
Technologies or McGraw-Hill, and newcomers like Westinghouse and
America's second-largest insurance company Aon Group.
By helping American firms expand their exports to China, the mission aims
to reduce the US trade deficit with China, according to a statement from
the US Department of Commerce.
Gutierrez told US media before his departure that the United States had
significant opportunities to increase its export volume to China.
Experts with China's Ministry of Commerce said both sides have been
making active efforts to develop trade relations after China and the
United States initiated a Sino-US strategic dialogue mechanism in
September.
But Mei Xinyu with the Research Institute of the Ministry of Commerce
said it was "unrealistic" to expect to reverse the trend in the short
term.
"China's trade surplus with the United States will continue to rise," he
predicted.
China's trade surplus with the United States grew to 102.2 billion U.S.
dollars in the first nine months this year, which served to strain
relations between China and its major trading partner.
In its five-year plan (2006-2010), the Ministry of Commerce is aiming to
reduce the trade surplus by increasing imports.
It is learned Gutierrez had talks with his Chinese counterpart Bo Xilai
to discuss hot topics like the trade imbalance and intellectual property
rights.
Gutierrez will stay in Beijing for two days before leaving for Shanghai
on Wednesday to participate in a series of meetings.
The American Chamber of Commerce in Shanghai has arranged a luncheon to
welcome Gutierrez on Wednesday, where he will deliver a speech on the
current US-China trade situation and prospects for the future.
Sources said the luncheon is sold out.
Analysts say the fundamental cause of the trade imbalance is China's high
savings rates and the hegemonic position of the dollar in the
international currency system.
They also noted that the US policy of limiting high-tech exports to China
restricts its overall export performance.
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