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China's product quality is sure to be increasingly better
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16:35, August 29, 2007

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The impact of Sino-US disputes on the product quality and safety has been extending and escalating at present. There indeed exist some product quality and safety problems in several hundred billion US dollars worth of Chinese exports to the United States. Likewise, there is also this kind of problem in American exports to China worth hundreds of billions of dollars. These are nothing but indisputable facts.

This issue is not so difficult to tackle, if both sides swap information and go in for consultations and coordination with a good faith for friendship and cooperation, proceeding from the objective reality. Furthermore, if China and the U.S., proceeding from their overall bilateral ties, will work together to go on improving a mechanism of information exchange and consultation in the fields of product quality and safety supervision and inspection, these problems can not only be reduced drastically but addressed permanently in a fundamental way. So this option poses the right move for solution.

In fact, the issue on Sino-US trade imbalance is politicalized behind the product quality and safety problem existing between the two nations. Of China's total export value to the U.S., 23 percent comes from the value of imported intermediate products. In addition, 70 percent of China's exports to the U.S. is produced through processing trade, and China only yields less than 20 percent of added value within its territory, according to a study finding made by the Foreign Economic Research Institute of the State Planning & Development Commission.

In an era of ongoing economic globalization, the United States provides the world with the knowledge-type services and high technology manufacturing, and East Asia is bent on doing designing and intermediate products manufacturing, whereas China has partaken in the East Asia production web and international division networks with the crucial component of its labor force.
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