US-China trade and investment links have benefited the two
countries and the governments of both should broaden their
bilateral relations, said Karan K. Bhatia, deputy U.S. trade
representative Tuesday.
Bhatia said in his address entitled "US-China Trade Relations"
at the Shanghai Institute of Foreign Trade (SIFT)?that
there was not a more important bilateral trade relationship today
than the one between the United States and China.
He said the dramatic growth of US-China economic ties is the
result of a historic transformation in China. Beginning in the late
1970s China's introduction of market-oriented economic reforms and
its encouragement of export-led growth had greatly influenced the
country's economy, he said.
Bhatia listed a group of statistics to illustrate the changes.
In 1981 China was the United States' 16th largest export market but
only its 27th largest supplier of imports ranking behind countries
like Malaysia, Indonesia, Australia and South Africa. There was
actually no U.S. direct investment in China at that time nor was
there any Chinese investment in the United States.
In 2005 bilateral trade volume was more than 50 times that of
1981. "China has grown from our 16th to our 4th largest goods
export market," said Bhatia. He added that US direct investment in
China in 2004 reached an impressive US$15.4 billion.
Both countries had benefited from the growth in trade and
investment, Bhatia said, noting that US consumers today had access
to an enormous range of Chinese-made goods at competitive
prices.
He said US companies have enhanced their global competitiveness
through their access to China's manufacturing base and China has
also fueled its economic development through access to the US
market.
The growing trade relationship between the US and China marked
the convergence of two great economic forces and the US should
regard China as a "responsible stake holder", Bhatia said. He noted
that the US and China along with Asian countries were the engines
of growth in the world today.
With regards to trade frictions, Bhatia, who is in charge of US
trade policy with China, said difficulties could arise even between
the closest of partners. He said although there had been frictions
no trade war would break out so long as the two sides settle their
disputes using mechanisms established by the WTO.
He pointed out that in a mature international relationship these
frictions are dealt with as individual issues while the broader
relationship continues to flourish.
The deputy trade representative remained excited by the
potential of US-China trade relations adding that the United States
would strengthen its investment and trade in the Asian region.
Bhatia visited the Philippines, Malaysia, Singapore, Japan and
other Asian countries before arriving at Shanghai. He arrived in
Beijing on Wednesday.
(Xinhua News Agency March 22, 2006)