Sino-US economic and trade ties maintain stable

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Sino-US trade has maintained stable growth even amid the global slump. So far it's topped 300 billion US dollars. But trade frictions have also heated up.

China and the US are now each other's second largest trading partner. China's customs figures show that bilateral trade topped 330 billion US dollars in 2008, up over 10 percent year on year.

Over the past five years, US exports to China have doubled. Trade surplus in the US service industry to China has maintained an annual growth of 36 percent.

Chinese Commerce Minister Chen Deming has predicted trade will exceed 500 billion US dollars in the next five years and that relations will be more balanced.

But frictions between the two powerhouses have also mounted with the unfolding of the global financial crisis. China has expressed deep concerns over the US's protectionist measures.

The Commerce Ministry has posted a strongly worded statement on its website. It says Chinese industry is extremely dissatisfied and the government, deeply concerned.

China has also expressed concerns over the value of its massive US bond holdings. Figures from the US Treasury Department show that by the end of May, Chinese holdings reached a record high of over 800 billion US dollars.

China is now the US's largest creditor, and it continues to increase the holdings. The US bonds are still a relatively better investment channel for China's foreign exchange reserves.