US

US exports to China set to rise

By Lan Lan (China Daily)
Updated: 2011-01-20 13:44

WASHINGTON - Exports to China from the United States will continue to rise in 2011, Chinese Commerce Minister Chen Deming said on Wednesday, thanks to Beijing's incentive measures for imports.

Chen told journalists that he wants the US government to move further in its exports regime reform.

China will review its trade policies and formulate measures to promote imports, with particular attention on economies with trade deficits with China, such as the US and some European Union members, he said.

For instance China will encourage companies involving in processing trade to sell more products domestically as processing trade is a major cause of the trade surplus.

However, trade balance between China and the US is not a matter, as some American think tanks and politicians see, of a currency issue, but largely a matter of trade facilitation, Chen said.

About 99.9 percent of China's total trade surplus is with the US, Chen told a small group of journalists.

China's trade surplus with the US was $181.3 billion in 2010, compared to China's total trade surplus of $183.1 billion in 2010, he said. The total value of China's foreign trade in 2010 is close to $3 trillion.

In contrast, China has trade deficits with the rest of Asia, Latin America and South Africa.

"If it's only trade surplus (or deficits) between two countries, that's not something to do with the currency, that's an issue about trade facilitation and liberalization and both countries should sit down and talk about specific barriers of trade," Chen said.

This year began with good prospects for trade ties between China and the US, indicated by a joint statement released on Wednesday, and a host of agreements to be signed during President Hu Jintao's state visit to the US.

Incomplete statistics show that China is going to buy US goods and products to the value of $24.9 billion, excluding airplanes, during the visit, Chen said.

In contrast, China's exports to the US with a value of about $12 billion will also be signed during the visit, he said.

The two countries also stated their commitment to free trade and investment, and their opposition to trade and investment protectionism.

They will sign contracts worth $5.1 billion for two-way investment, and Chinese investment in the US will be as high as $3.2 billion.

It is also necessary for the US government to be "cooperative" and ensure that Chinese companies can buy products they want from the US as the government is only formulating policies; companies make the final decision to buy items to cater to customers.

Chen urged the US to lift its "rigorous" regulations on the control of exports to China, which will ensure US companies enjoy fair competition.

In 2007, the US passed regulations to control exports to China. China is excluded from a group of 164 countries that US government offers trade facilitation in a recent review of its export regime, which has solicited public opinions in December.

Chen said China has waited for two years for the US to review its exports regime, given that China is its third largest export market.

China Daily