China and the US held their annual trade talks yesterday.

Both sides made positive comments on the result of the 16th session of China-US Joint Commission on Commerce and Trade (JCCT).

Representatives of the two trade partners did not resolve all the problems in the one-day meeting, but did make progress on a series of topics.

Trade officials of the two countries should be commended for holding sensible talks rather than engaging in unfruitful spats and browbeating as seen on other occasions.

The JCCT meeting was held at a time when the two countries are entangled in a number of economic disputes ranging from textile trade to the renminbi's exchange rate.

Some even worried that the two might be heading towards a trade war.

However, despite the usual rhetoric, trade officials refrained from escalating the disputes.

Officials of both governments said they wanted to avoid a trade war and resolve issues through talks. They understand that a trade war will be no good for either side.

For China, the US is important for manufacturing goods and an important source of high-tech products.

For the US, China's huge market remains a key factor when the US assesses Sino-US trade relations. They hope to gain a bigger slice of the Chinese market to narrow its trade deficit.

However, as the Vice Premiere Wu Yi put it, "the mutually beneficial and complementary nature of Sino-US trade relations is reflected in so many aspects that it cannot simply be measured by customary statistics."

Yesterday's talks reached quite a few agreements.

China agreed to step up its efforts in enforcement of intellectual property rights, a key concern on the US side.

The US said they would be prudent in using the "special safeguard" measures against China's textile exports.

The two also agreed to restart substantial consultations on the textile issue as soon as possible.

Despite the two sides' commitment to taking an active, responsible attitude, the talks on textiles could still be tough.

Reemerging protectionism from the US and its tendency to politicize business transactions involving China will continue to make the development path of Sino-US trade a bumpy one.

Some have been trying to push the US further on the path of protectionism by imposing punitive tariffs on Chinese exports in response to what they believe is an undervalued Chinese currency.

It is a relief that the US still has reasonable people like Federal Reserve Chairman Alan Greenspan, who rejected the proposal.

But the force of protectionism and the China-bashing group are still there.

Trade officials from China and the US should be prepared for more tests of their vision and wisdom.

(China Daily July 12, 2005)