Obama's job plan 'will not affect China'

A series of incentives unveiled by US President Barack Obama to create jobs for Americans will not have a major effect on China's trade relationship with the US, economists said yesterday.

Obama devoted most of his 65-minute State of the Union address on Wednesday to job-creation proposals, such as eliminating capital gains taxes on small business investment and extending tax breaks for businesses to invest in new plants and equipment.

"There will be some trade frictions between the two countries this year as the US government strives to create or retain jobs. But trade frictions, including exerting pressure on the renminbi's appreciation, certainly cannot help Americans have more jobs," said Li Xiaogang, a researcher at the Shanghai Academy of Social Sciences.