Sino-US trade advances despite disputes

US trade with China has surged by an average of 43 percent annually the past three years, making China the US' third largest trading partner. But this astounding growth in trade has not been without its problems.

The US trade deficit with China is emerging as a sensitive issue, particularly in a presidential election year. China has become the target for half of all the anti-dumping cases brought by US companies. Chinese experts note that while China does have a sizable trade surplus with the US, it's only because it has absorbed much of the US trade deficit with other countries.

Professor Hai Wen from China Center for Economic Research, Peking University said, "Deficit between US and other countries being reduced, at the same time, deficit between US and China increased. Many of these are originally deficits with other Asian countries. If everybody looks at the data carefully, not try to use these data to blame China, they should understand this point."

There is also a statistical discrepancy. Experts suggest that figures suggesting the trade deficit runs to 20 billion US dollars are exaggerated, as the added value generated in Hong Kong in transit trade is not excluded. Transit trade makes up much of China's exports to the US.

But the economist maintains the current trade relationship between the two countries is healthy, and believes the problems are just temporary. He says he is optimistic about more balanced trade prospects in the future.

Hai also said, "US needs products in China, which can improve the living standard of US by lowering the cost. In the future, I believe China will import more from US, and US will also be able to export more to China. So this is no problem forever. It's the problem in the period."

But he adds that the key lies with the US. A relaxation of its restriction on high-tech products to China would help correct the current trade imbalance.

Trade is critical for both China and the US, with the former entering a new stage of development, and the latter feeling the pressure of a presidential campaign. Mutual benefit for both sides can only come with patience and better understanding.

Source: CCTV News