Liao Xiaoqi, China's vice commerce minister, wrote an article
that was published in Wednesday's overseas edition of the
People's Daily that discussed Sino-US trade relations. The
following are the main points of his article:
Sino-US trade relations are one of the world's most crucial
bilateral trade relations. Since China and the United States
established diplomatic relations 26 years ago, bilateral trade and
cooperation have improved and expanded to various economic fields.
Bilateral trade volume rose from US$2.5 billion in 1979 to US$169.4
billion in 2004.
As at the end of 2004, the number of investment projects the US
had in China was 45,000, representing a total investment of US$48
billion. Sino-US trade volume for the first ten months of this year
was valued at US$127.3 billion, representing a 26.2 percent
increase over the same period last year. Presently, the US is
China's second largest trading partner, while China is the third
largest for the US.
The biggest increases were seen in US exports to China. In 2001,
China became the US' ninth largest export market; and in 2004, the
fifth. From January to August this year, US exports to China
surpassed its exports to Britain for the first time. Between 2001
and 2004, US exports to China saw an increase of 21.85 percent,
while the second biggest annual increase for US' top ten export
markets was only 7.65 percent, which was Holland.
Mutual benefit and win-win are the significant features of
Sino-US trade cooperation. The two countries' economies are
supplementary and strengthening bilateral trade cooperation works
for the benefit of the two countries' economic development and can
bring real benefit to their peoples.
China's exports to the US over the years have not only boosted
China's own economy. They have also helped the US to meet market
demands. They've even helped reduce expenses for Americans. A
report by investment bank Morgan Stanley shows that over the past
10 years, low-priced and high quality Chinese goods helped American
consumers save over US$600 billion. The figure for 2004 alone is
US$100 billions. Young American parents saved US$400 million by
buying Chinese-made children's wear.
Conversely, American companies make huge profits from bilateral
Sino-US trade. In 2004, China was indirectly involved in the
creation of between 4 and 8 million jobs for the US. In addition to
airplanes and fertilizers, China imports enormous amount of wheat,
soybean and oranges from the US every year. While these imports
meet China's own demand, they also lend strong impetus to the US
economy and employment.
American companies have also reaped generous returns on their
investments in China. US investments in China include
manufacturing, telecommunication, banking, insurance, research and
development, transportation, agriculture, and food and beverage.
Statistics show American companies in China sold a total of US$75
billion worth of products to Chinese consumers in 2004, almost
equal to the value of goods sold to markets outside of China.
According to a white paper published in September by the
American Chamber of Commerce, 93 percent of American companies in
China believe China's economic reform has improved the business
environment for American enterprises; 92 percent are optimistic or
cautiously optimistic about their business prospects in China for
at least the next five years; 86 percent have reported higher
revenues while 68 percent are profitable or highly profitable; and
42 percent reported higher profits in China than elsewhere in the
world.
The white paper concludes that American enterprises have
confidence in China's business environment and desire to solve
business problems through constructive dialogue. This proves that
the US' investment not only helps boost China's economy, but also
offers unprecedented opportunities for American enterprises.
(China.org.cn by Wind Gu, December 4, 2005)