Foreign Minister Li Zhaoxing has urged the United States to lift restrictions on exports to China in an effort to narrow the trade gap between the two countries.

In a speech delivered at a luncheon hosted by the US-China Business Council on Tuesday, Li said with the development of economic globalization, trade between the two countries becomes more and more complementary and mutually beneficial.

China is now the fourth largest trading partner of the United States, and is likely to become the third by the end of this year,Li said.

"It's truly exciting to see the prospects of China and the United States becoming each other's largest trading partner in the new century,'' he added.

Li said the United States had a trade surplus with China for 21 straight years since 1972, and China only started to have a surplus in 1993.

Most Chinese exports to the United States are labour-intensive goods that the United States has stopped producing. The goods are affordable and of good quality, which not only benefits average American customers but also helps US industrial restructuring and upgrading, he said.

Furthermore, more than half of the Chinese exports to the United States are produced by foreign-funded enterprises in China, mostly US companies.

"China surely hopes to buy more from the United States, but that needs US help. For example, the United States should lift its restrictions on exports to China,'' Li said.

Last year two-way trade between the two countries stood at US$97.18 billion, and the first half of this year saw the figure rising 34.4 per cent to US$56.4 billion on a year-on-year basis, with US exports to China increasing by 36.1 per cent.

In his speech, the foreign minister also stressed that basically stable Chinese currency facilitates trade between China and the United States.

China's exchange rate system, based on market supply and demand, is consistent with China's realities.

China must maintain basic stability of the renminbi exchange rate, which is conducive to the economic stability in Asia-Pacific and the world at large, and the stability of the financial environment for China-US trade, the foreign minister said.

Also on Tuesday, Li met US Defence Secretary Donald Rumsfeld. They discussed Sino-US relations, with an emphasis on military exchanges between the two countries.

Close

Today's Top News		Top National News
+Russia pledges to live up to oil commitment ( 2003-09-25) +Experts: Protecting farmers' interests ( 2003-09-25) +New rule eases residency limits for multinationals' staff ( 2003-09-25) +Taiwan's `abnormal' flight plan slammed ( 2003-09-25) +Media elite booted in major bribery sweep ( 2003-09-25)		+Experts: Protecting farmers' interests ( 2003-09-25) +Guangdong police smash 3 cash counterfeit gangs ( 2003-09-25) +Buddhist contribution to society recognized ( 2003-09-25) +US urged to lift export restrictions ( 2003-09-25) +China to get huge computer grid ( 2003-09-25)