Wen Jiabao: Dialogue, not trade war

cctv.com 12-09-2003 12:53

Trade is high on Premier Wen Jiabao's agenda in the United States. US figures show its trade deficit with China this year has topped 103 billion US dollars, and it has recently taken a series of tough measures against imports from China. But the surging trade surplus between the two countries is a result of the structural problem of the US economy, and the way to reduce it is not through trade sanctions, but dialogue.

First, quotas on Chinese textile products from gowns and bras to knit fabric, followed by high tariffs slapped on Chinese-made televisions. The recent frenzy of US trade sanctions on Chinese products have not only caught Chinese manufacturers unawares, but also fueled worries of what may be next.

The measures are the US's latest response to the 103-billion-US-dollar trade deficit with China. But senior researchers of Sino-US trade relations say instead of pointing an accusing finger at China, the US should look closer to home for the root cause of such a yawning trade deficit.

Research Fellow of Institute of American Studies, CASS Chen Baosen said:"The root cause lies in US overspending, and its need to import a large quantity of foreign goods."

Also, due to structural change in US economy, which is becoming more technology-intensive, its manufacturing sector has continued to shrink in recent years. Chinese goods, due to their competitiveness in quality and price, have gained a strong foothold in the US market.

Both US consumers and businesses have benefited from cheap and high-quality Chinese goods. But some in the US see the inflow of Chinese products as the cause for the recession of related industries in the US, and have demanded the Bush administration take punitive measures against Chinese firms.

Election year politics are shaping Washington's decisions on these questions, disregarding Bush's own proclaimed "free trade" agenda.

China becomes the scapegoat. Despite this, China has genuinely tried to control the increasing trade deficit. The recent trade delegation to the US, which signed immense trade deals with US firms such as Boeing and General Motors, is one example.

Wen Jiabao said:"In my earlier remarks I already expressed our desire to import more from the United States. However, one should not always expect the Chinese people to only take your Boeing plane and eat your soybean."

Chen Baosen says the important thing now is whether the US is willing to sell China what it wants.

Observers say that in the end, the two economies are complementary rather than competitive. If the two sides can resolve the increasing trade dispute through dialogue, it will benefit both.

Editor:Su  Source:CCTV.com