Trade deficit with China not cause for US job losses

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Last updated at: (Beijing Time) Tuesday, December 09, 2003

Trade deficit with China not cause for US job losses

Trade with China is helping create jobs in the United States rather than contributing to its unemployment problem, said China's Vice Commerce Minister Ma Xiuhong Monday in New York.

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Trade with China is helping create jobs in the United States rather than contributing to its unemployment problem, said China's Vice Commerce Minister Ma Xiuhong Monday in New York.

"Facts have proved conclusively that the sound development of the China-US economic and trade relations have created much room for job creation in the United States, rather than leading to job losses," Ma told reporters.

"The prospects for the creation of more jobs (in the United States) as a result of exports to China remain very bright," added Ma, who is accompanying Chinese Premier Wen Jiabao on a four-day official visit to the United States.

The trade deficit the United States has with China does not mean jobs are lost in the United States and China's products do not pose a threat to the development of US industries, she stressed.

"I very much agree with many American economists and international trade experts. In their view, imports are not a decisive factor for employment, but rather the key lies in promoting US exports," Ma said.

Ma said US exports declined 4.9 percent as a whole in 2002 but its exports to China increased 15 percent. In the first nine months of this year, total US exports rose just over 2 percent while exports to China surged 18.5 percent in the same period.

Among the top 10 destinations for US exports, China has been the fastest growing for three consecutive years, she said, predicting that China will very likely become the fifth largest trade partner of the United States in 2003.

"US exports to China have increased by very big margins, especially during the past two years, since China's entry to the World Trade Organization," she said. "The momentum is still ongoing."

"Facts have showed that China has become the main driving force for the export growth of the United States," she emphasized.

Ma also expressed the hope that the United States would expand exports of high-tech products to China in order to reduce its trade deficit with China.

Trade is expected to be one of the main topics during Wen's talks with US leaders in Washington. Some US officials and trade unions have blamed Chinese exports for job losses in the United States and the US administration said earlier it was ready to restrict imports of fabric products from China.

Premier Wen left for Washington late Monday after a two-day stay in New York.

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