Sino-US trade still strong despite disputes: experts

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Last updated at: (Beijing Time) Thursday, December 04, 2003

Sino-US trade still strong despite disputes: experts

Disputes shadowed Sino-US trade in the last few months of 2003, but trade experts were optimistic, saying trade between the two countries will still grow strongly.

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Disputes shadowed Sino-US trade in the last few months of 2003, but trade experts were optimistic, saying trade between the two countries will still grow strongly.

Zhang Xiaoji, director of the Foreign Economic Relations Department of the Development Research Center of the State Council of China, said in an interview with Xinhua that Sino-US trade has entered a stage of interdependence.

China has become a major supplier of labor-intensive products for the US consumers and the United States is China's second largest trading partner after Japan.

Sino-US trade surged 30.7 percent year-on-year to hit 102.48 billion US dollars in the first 10 months, figures from the Chinese Customs show. It was more than the figure of last year, recorded at 97.18 billion US dollars.

China bought 27.56 billion US dollars worth of planes, fertilizer, power station equipment, chemical products, electronic facilities and machinery from the United States in the January-October period, up 25.7 percent.

Chinese exports to the United States reached 74.92 billion US dollars, with the main goods being shoes, garments, toys and machinery and electronic products, official figures show.

China is now the fourth largest trading partner of the United States.

"This should be a good indicator of the interdependence between China and the United States in terms of trade," Zhang Xiaoji said. "The different economic structure has produced huge complementation and potential for Sino-US trade."

The trade disputes, sparked in November by the US decision to re-impose import quotas on knit fabric, bras and gowns made in China and the negative anti-dumping verdict on Chinese color TV sets, will not stop the strong growth of trade, experts predicted.

Wang Youli, a researcher in the Chinese Academy of International Trade and Economic Cooperation, the think-tank of the Ministry of Commerce, said the heating situation was a byproduct of the US economic condition and its rising trade protectionism.

"China's implementation of its commitments to the World Trade Organization, its lowered customs duties, and its willingness to settle the disputes through dialogues in a row, will help create a favorable condition for future trade development," Wang said. "Sino-US trade will progress despite the disputes."

Trade disputes will likely be a major topic during Chinese Premier Wen Jiabao's upcoming visit to the United States. Wen said in a recent interview with the Washington Post that during his first visit to the United States as Chinese premier he will suggest to establish a dialogue mechanism between the two countries to prevent trade disputes.

President Douglas L. Devos of Amway Corporation said setting up unnecessary trade barriers may harm the overall interests of the United States.

Economic cooperation and trade between the United States, the world's largest market, and China, a growing market with huge potential, serve the interests of the two countries' companies, governments and peoples, he said.

Devos said he hopes the upcoming visit by Premier Wen Jiabao would inject new vigor to trade between the two countries.

Zhang Xiaoji predicted that the possible establishment of a dialogue mechanism will help clear barriers to Sino-US trade.

"The momentum of trade growth will continue next year and the year ahead," Zhang said. "Differences again might emerge, but trade will grow with the help of dialogue which could reduce disputes."

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