Chinese Commerce Minister Bo Xilai reaffirmed in Ho Chi Minh City Thursday that the China-US trade deficit is structural, movable and mutually complementary, which is beneficial to both sides.
He made the statement when telling reporters on the sidelines of the two-day Meeting of APEC (Asia-Pacific Economic Cooperation) Ministers Responsible for Trade which started in southern Ho Chi Minh City on Thursday.
The structural deficit is determined by the structure of industries of China and the United States. Now the United States manufactures medium- and high-technology products, while China produces low-tech items. under such situation, the United States' importing low- and medium-technology goods of China is natural and beneficial to the two sides, Bo said.
Because the United States imports Chinese low-cost and fine products, U.S. consumers can save money, and the possibility of inflation faced by the United States is reduced, he explained.
The United States used to post trade deficit with East Asian countries, mostly Japan and South Korea. Now trade deficit of the United States with the two East Asian countries have narrowed, while that with China has widened.
However, trade deficit of the United States with East Asia has changed little. Over the past five years, the deficit with the region has declined. Therefore, it is movable.
Bo stressed that one important aspect of the China-US trade deficit is mutually complementary. Through the buying and selling of Chinese products, U.S. consumers save domestic spending, while the U.S. retail sector has reaped big profits and created more jobs. Meanwhile, Chinese exporters have created many jobs by exporting their goods to the U.S. market.
Due to the complement, the trade between China and the United States annually increases quickly. However, China, in recent years, has actively held back its trade surplus to the United States since too big trade surplus puts pressure on China, Bo said.
During the two-day ministerial meeting, delegates from 21- member APEC are to focus their discussions on supporting the Doha negotiations, developing regional trading arrangements and free trade agreements in the Asia-Pacific region, formulating an action plan to implement the Busan Roadmap towards the Bogor goals on free and open trade and investment in the region, improving trade and investment facilitation measures, and intensifying protection of intellectual property rights.