I.Soaring Trade Between
China
and the United States |
Developing Sino-US economic and trade relations serves the fundamental
interests of both peoples. Following the establishment of diplo"imatic
relations between the People's Republic of China and the United States,
bilateral economic and trade ties have grown fast, featuring complement
and mutual benefit. Occasionally, however, frictions and differences took
place. At present, the issue of bilateral trade balance -- much too stressed
and even exaggerated by the United States -- has hindered the healthy
development of economic and trade relations between the two countries.
It has also caused concerns among relevant countries and regions. In our
bid to develop Sino-US relations and promote bilateral trade, we think
it necessary to make clear the position and viewpoints of the Chinese
Government on the issue. Chinese statistics indicate that, in 1996, US products accounted for 11.6% of China's total imports, while US statistics show 5.42% of its imports last year came from China. The United States is one of the fastest growing markets for Chinese exports while China is also one of the fastest growing markets for US exports. Both countries' statistics suggest that between 1990 and 1996, US exports to China grew by more than 16% a year on average, far exceeding the overall US export growth in the period. China is one of its trade partners with which the United States scored the highest export growth. This is mainly attributable to the marked differences in the two countries' resources, economic structures, industrial setup and consumption levels, and to the fact that their economies can be complementary to each other. China is a developing country with low labour costs, but suffers from capital constraint and relatively under-developed scientific and technological development. The United States is a developed country with abundant capital and highly advanced technologies, but suffers from high labour costs. China mainly sells to the United States labour-intensive products such as textiles, garments, shoes, toys, electric home appliances and luggage. The United States mainly sells to China capital- and technology-intensive products such as aircraft, power generation equipment, machinery, electronics, telecommunications equipment and chemical machinery, as well as agricultural products including grain and cotton. So complementary and mutually beneficial is the structure of their exchanges of goods that it has greatly pushed the development of bilateral trade. |
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