International Ties

Persistent efforts needed for Sino-US economic ties

(Xinhua)
Updated: 2010-10-02 09:48

WASHINGTON - China and the United States have wide-ranging economic and trade ties and both sides need to address bilateral relations in a realistic and concrete way, a well-known US economic expert said Thursday.

Kenneth Lieberthal, director of the John L. Thornton China Center at the Brookings Institution, told Xinhua that there are trade problems in the bilateral relationship which need "persistent efforts" of both sides to solve.

With the approaching congressional elections and mounting pressure from high unemployment rate, the Obama administration is under pressure to boost the sagging economy and spur hiring and some US lawmakers were weighing bills to slap sanctions on imported goods to promote US exports.

The US House of Representatives on Wednesday passed the proposed Currency Reform for Fair Trade Act to allow trade sanctions against its trade partners for allegedly manipulating their currencies, drawing worldwide concerns again.

"Trade war would be a disaster. A currency war would be very damaging as it will lead to a trade war," said Lieberthal, also a senior fellow at Brookings Institution.

Chinese Foreign Ministry spokeswoman Jiang Yu said Thursday China firmly opposes the legislation passed by the US House of Representatives and urged US lawmakers to fully comprehend the importance of China-US trade and resist protectionism to avoid harming the interests of the people of China, the United States, and the world.