Minister of Commerce Bo Xilai told visiting US Secretary of Commerce Carlos Gutierrez Monday that China is working hard to balance trade with the United States and "is not in pursuit of a huge trade surplus."

Minister of Commerce Bo Xilai meets visiting US Commerce Secretary Carlos Gutierrez in Beijing Monday. [newsphoto]

Bo also pledged to strengthen protection of intellectual property rights.

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Gutierrez's visit comes amid growing US concern about its trade deficit with China, which grew to US$102.2 billion in the first nine months of this year.

China has a large foreign exchange reserve and it is not in its interests to have too high a trade surplus with the United States, Bo said.

He noted that US exports to China are increasing rapidly, especially agricultural products, and China is expected to become the third largest export market of the United States next year.

In some areas, such as service and cultural industries, the United States has obvious advantages over China and enjoys a trade surplus. The branches or joint ventures of US companies in China have also contributed to the deficit and benefited from it, Bo said.

Bo said he hoped the US side would ease restrictions on high-tech exports to China, a common concern of companies from both sides. He also hoped the US side would make substantial efforts with regard to the recognition of the market economy status of China.

Gutierrez said he wanted to accelerate US export growth to China as a way to narrow the trade imbalance between the two countries.

"The future should be focused on exporting to China as a way of improving our balance," Gutierrez told reporters after the meeting in Beijing, where he was starting his fourth trip to China as the top US commerce official.

Gutierrez, accompanied by over two dozen US executives hoping to expand business in China, sought to highlight US export growth as the best way to balance trade.

"We judge by results, by the numbers we see, and I can tell you this year our exports to China are up on a year to date basis 34 per cent, and that is up over last year, which was up 20 per cent," he said.

In the nine months to the end of September, US exports to China totalled US$40.2 billion, making China the United States' fourth largest export market.

On IPR, Bo said strengthening IPR protection was in China's interests, and the two sides had co-operated well. China hopes to have more information exchanges with the US side in this field.

Bo said 50 centres had been established across China with national financial support to receive information about IPR infringements. The courts were also accepting and handling more cases.

Gutierrez will stay in Beijing for two days before leaving for Shanghai tomorrow.