Global giants move markets
China and the United States - the biggest developing and largest developed nations - should solve problems with patience, flexibility and consultation, said Chinese Vice-Premier Wang Qishan , according to Xinhua news agency.
Wang made the remarks during his US visit for the fourth China-US Strategic Economic Dialog last month.
The two-day dialog that began on June 17 concluded with a 10-year cooperation framework for energy and the environment as well as protection of investment, highlighting what's important in bilateral relations.
Before the dialog began, the two nations signed $13.6 billion trade deal, seen as part of China's efforts to increase imports from the US.
"The history of China-US economic relations repeatedly reminds us that dialog and consultation work better than confrontation and accusation," said Zhou Wenzhong, Chinese ambassador to the US
Statistics from China's Ministry of Commerce show trade volume between the two nations hit a record high $302.08 billion in 2007, 15 percent more than the previous year.
China is the second-biggest trade partner of the US and its fastest-growing export market, noted Zhou. Total US exports increased by 32.6 percent in the period from 2000 to 2006, while exports to China alone grew 341 percent in the same period.
With direct investment in China exceeding $56 billion, funding a total of 54,595 projects by the end of last November, the US continues to be China's biggest source of foreign investment.
Direct investment from China in the US also continues to increase, Zhou added.
US direct investment in China is not only contributing to China's economic growth but also brings hefty profits to US investors.
A survey by the US-China Business Council published in October 2007 showed that 83 percent of the US companies find their China-based operations profitable, 85 percent recorded revenue increases and two-thirds said their Chinese operations had an equal or higher profitability rate than their global average rate.
With labor intensive projection lines moved to other parts of the world, the US will import resulting products, whether from China or not, Zhou said.
"This is a result of international division of labor in the process of globalization," he said.
Though 3 million manufacturing jobs disappeared in the US between 1996 and 2005, 15 million new jobs were created in the same period in the service sector, which accounts for 80 percent of the US economy.
Close economic cooperation has brought "real benefits" to the peoples of both countries, Zhou said.
Some 4 to 8 million job opportunities in the United States are related to trade with China, according to the estimation by Morgan Stanley.
Inexpensive products from China met consumer demands in the US and saved customers roughly $600 billion in the past decade.
The World Bank statistics show that between 2003 and 2005, China contributed 13.8 percent to the global increase in gross domestic product (GDP) second behind top-ranking US, whose economic growth contributed 29.8 percent.
"Clearly, globalization has ruled out the possibility of glorious isolation for either of our countries," Zhou said.
Both nations should take a long-term global view of their economic ties and commit themselves to greater international cooperation, Zhou said.
Xinhua
(China Daily 07/04/2008 page21)
