Minister urges stronger Sino-US trade
By Dai Yan (China Daily)
Updated: 2005-12-10 06:34
Minister of Commerce Bo Xilai on Friday told American businessmen that the
relationship between China and United States is a win-win one, but both sides
should work to make the market as big as possible rather than initiate a
damaging trade war.
Speaking at the American Chamber of Commerce's (AmCham) 2005 Appreciation
Dinner, held at the China World Hotel in Beijing, Bo said: "If one side is
successful, the other can be successful."
However, he said there is a worry that some people in the United States are
proposing to impose punitive duties on all Chinese goods because of the trade
"But I have told you there will be a trade war if the United States does so.
It would be a misfortune to every one here," Bo told 700 senior Chinese
officials and US executives at the dinner.
Bo said he believed the big surplus in Sino-US trade is structural, and no
one has forced them to make the deals.
Chinese commerce minister Bo Xilai (L) and US
trade representative Rob Portman sign a textile agreement.
Chinese statistics say the trade surplus is expected to reach US$100 billion
this year, while the US side predicted it would be US$200 billion.
"The American businessmen all voluntarily do business with China. They are
very smart and will not make money-losing deals," Bo said.
Bo said according to his knowledge the US companies get 90 per cent of the
profits from bilateral trade.
Bo said he is happy as China and United States have solved the textile
dispute, their largest trade problem since China entered the World Trade
"The United States produces high- and medium-range products while China
produces low- and medium-range ones. However, while you are eating lobster, you
are still worrying that China eats too much sandwich," Bo said.
The minister said he can understand the business behaviour but he believes US
companies should focus more on the big Chinese market.
"China still needs 500 aircraft by 2010 and the number could be as big as
3,000 by 2020. And Chinese people sent 100 million text messages just for New
Bo said AmCham has done much to help China with its economic development.
"You helped us with permanent normal trade relations (PNTR) and with our
accession to the WTO."
On his part, the commerce minister said he will work to provide a better
business environment for foreign businesses in China, by focusing on improving
transportation networks in China, by ensuring compliance with requirements of
China's accession to the WTO, and by stepping up enforcement of intellectual
property rights protection.
(China Daily 12/10/2005 page1)