China-U.S. trade is win-win game
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A sound and stable China-U.S. economic and trade relationship is more important than ever and the trade between the two countries is a win-win game, said Chinese Vice Commerce Minister Zhong Shan in an article published on Friday's Wall Street Journal.
"China-U.S. trade and economic cooperation has generated huge and real benefits for the United States, while China has been gaining a lot from it as well," Zhong stated in the article.
In 2009 China jumped to become the third biggest market for U.S. exports. American companies have cumulatively invested over 62.2 billion dollars in 58,000 projects in China and reaped bumper harvests. Their profits in China amounted to nearly 8 billion dollars in 2008 alone, according to the data released by the Chinese government.
Zhong said that since the outbreak of the international financial crisis, China has been supporting the efforts of the American people to tackle the crisis.
"On the one hand, China has increased imports from the U.S.," said the Chinese official.
While overall U.S. exports dropped 17.9 percent in 2009, exports to China hardly decreased. Many U.S. manufacturing firms have found comfort in the Chinese market as a shelter against the global financial storm.
"On the other hand, good value-for-money, labor-intensive goods imported from China have helped keep the cost of living down for Americans even when they become increasingly cash-strapped," said Zhong. "Without consumer goods from China, the U.S. price index would go up an extra two percentage points every year."
He insisted that the renminbi exchange rate is not the key to addressing China-U.S. trade imbalance.
According to the Chinese government, from 2005 to 2008, the renminbi appreciated by 21 percent against the U.S. dollar but China's trade surplus with the U.S. increased by 20.8 percent annually.
Since 2009 the renminbi exchange rate has remained basically stable, but China's surplus with the U.S. has fallen by 16.1 percent.
Zhong added that in 2009 the dollar depreciated against the euro, the Japanese yen and the South Korea won, which did not bring about fundamental changes in the trade between the U.S. and these countries.
"As a matter of fact, only a basically stable renminbi and dollar are conducive to the overall interest of the international community," he said.
Meanwhile, Zhong said China always upholds and seeks balanced trade, urging the U.S. side to vigorously expand exports to China.
"Only balanced China-U.S. trade could bring about sustained development, mutual benefits, and a win-win relationship," Zhong said. "The achievement of this goal rests not with restricting China's exports to the U.S. but with increasing U.S. exports to China."
"We hope that the U.S., while implementing its strategy to boost exports, can scrap the Cold War mentality, relax its export control against China, and expand the export of competitive products to China," said the Chinese trade official.
Zhong said he agreed with Chinese Premier Wen Jiabao's recent comments on China-U.S. relations. Wen said that it is always better to have a dialogue than a confrontation, cooperation than containment, and a partnership than a rivalry.
"As long as we approach the China-U.S. commercial relationship in a responsible manner we will definitely be able to make it more stable and sound," said Zhong in the article.
