China-US Trade Beneficial to Both Peoples

The 2nd round of China-US strategic economic dialogue is to open in Washington on Tuesday.

An expert on China-US relations calls for the US to loosen control on high-tech product exports to China, and reach a more balanced trade.

CRI's Xu Weiyi reports.

Reporter:

Professor Jin Canrong from Beijing-based Renmin University says that, from an economics perspective, there is currently no big problem in China-US trade.

He says the current trade structure between the two sides is healthy and beneficial, although there're small frictions existing.

He explains the existing trade frictions as a result of the high-speed development of bilateral trade.

"There are some trade frictions between China and the U.S. However, they're controllable. The bilateral trade between China and the U.S. totaled only 12 billion US dollars in 1990, which has now increased to over 260 billion. As trade expands, of course, disputes will increase as well."

Currently, the US is the biggest trading partner of China, while China is the third largest trading partner of the US, following Canada and Mexico.

Regarding China's sizeable trade surplus to the U.S., Jin Canrong explains.

“What China has exported to the US are middle and low-end products that the US no longer produces. So, it will do no good to the US industrial workers if these China-made products are squeezed out of the US market.”

He says China is, in fact, helping American people to maintain a comfortable life and control inflation, as Chinese products are fairly-priced and good in quality.

According to statistics from the World Bank, China's export has saved 100 billion US dollars for the Americans each year.

Meanwhile, Jin Canrong says the US government should relaxed its control on high-tech exports to China.

“The US government has refused to recognize China's free market economy status. It 's also limited export of high-tech products to China."

Jin Canrong points out the real problem in China-US trade is that some American senators tend to politicalize the economic and trade issue, thereby taking advantage in elections and achieving their goals in domestic political sphere.

Xu Weiyi, CRI news.