Source: China Daily

03-12-2007 14:57

The trade between China and the United States is basically balanced and mutually beneficial, with the surplus going to the Chinese and the profits flowing to the Americans, said Commerce Minister Bo Xilai Monday.

The total sales of US-funded enterprises in China and their exports, using China as a base, to other parts of the world stood at US$110 billion, said Bo on the sidelines of the annual session of China's parliament.

Combining this figure with America's surplus in service trade and deficit in goods trade, one can find that the trade between the two countries is balanced, noted the minister.

He pointed out that the bilateral trade is mutually beneficial, with the surplus going to the world's fastest growing major economy and the profits flowing to the world's most powerful nation.

"Only because of mutual benefit could the Sino-US trade be going smoothly, expanding all the way and doing better and better," said Bo.

"If the US business circle found that it's not profitable to do business with China, they would not continue," the minister said.

Bo reiterated the country's opposition to a 27.5 punitive tariff proposed by some US lawmakers on all Chinese exports.

"If the proposal goes forward, it will be destructive to the current bilateral trade which is developing healthily, as well as disastrous news to both countries' enterprises that have achieved double-win in the relationship," said he.

The minister believed the slap of the tariff, if passed, is out of line with WTO rules.

"If such a policy is enforced, it is not only trade protectionism, but also trade hegemony," noted Bo.

On the increasing trade friction between China and major trading partners, especially the US and EU, Bo said he hoped that most of the problems could be solved through talks. But China will also respect the related parties' choice to turn to the WTO mechanism.

Editor:Li Yang