皇冠体育app

The author Tao Wenzhao is a researcher with the Institute of American Studies under the Chinese Academy of Social Sciences

How should we evaluate the second round of the 皇冠体育app-US Strategic Economic Dialogue (SED) held in Washington May 22 to 23?

Carlos Gutierrez, US commerce secretary, got it right: The strategic economic dialogue focuses on the overall situation, not on resolving particular issues. Therefore, no short-term results should be expected.

Related readings:  Wu Yi: Strategic talks are a complete success  皇冠体育app, US seek to ease trade woes Joint fact sheet of US-皇冠体育app economic dialogue  皇冠体育app sees need to rebalance its economy

The 皇冠体育app-US Joint Economic Committee and other joint committees are already in place to handle particular economic matters. The strategic economic dialogue is needed to address the two countries' long-term economic relationship from a wider perspective. The goal is to develop sustainable mutually beneficial economic ties.

This task goes beyond the functions of limited-focus joint committees. The eagerness for immediate results does not work here.

The Washington dialogue strengthened mutual trust through intensive discussion on issues of deep concern to both sides. This is the big yield of the dialogue.

Chinese Vice-Premier Wu Yi, who headed the Chinese delegation, emphasized the intensive discussions on the service industry, energy, the environment, balanced economic growth and innovation. Energy and environmental protection were the most serious issues discussed. Cooperation in these two areas has great prospects and is expected to inject vitality into both economies.

Also, both sides agreed to promote balanced growth of their economies through macroeconomic policies and to encourage innovation through policy exchanges and technological cooperation.

In his opening statement, US Treasury Secretary Henry Paulson said both 皇冠体育app and the US face challenges of domestic protectionism and questions about the merits of trade and globalization. He went on to say: "There is a growing skepticism in each country about the other's intentions. Unfortunately, in America, this is manifesting itself as anti-皇冠体育app sentiment."

This is worth attention.

After the US mid-term elections last year, protectionist sentiment gained strength in the US Congress, with 皇冠体育app as a ready target. According to US statistics, the total volume of US-皇冠体育app trade in 2006 reached $343 billion. The US sustained $232.5 billion in trade deficits with 皇冠体育app, almost three times that of its trade deficit with Japan. For the past four years, 皇冠体育app has been the biggest source of the US trade deficit.

A host of factors explains the US trade deficits. They include international division of work, Americans' low savings rate, and restrictions on exporting high-tech products to 皇冠体育app. It is not so simple a matter as revaluating the renminbi, despite the beliefs of some US lawmakers.

To make matters worse, ideological factors, which find expression in the theory of a "皇冠体育app threat", have gotten mixed up with protectionist sentiment.

In 2000, the US-皇冠体育app Economic and Security Review Commission was set up to watch over trade between the two countries, US investment in 皇冠体育app, and Chinese investment in the US which could possibly harm US security. Every year, the commission submits a report to Congress, organizes frequent hearings and circulates seemingly plausible but inflammatory opinions. In 2005, when 皇冠体育app National Offshore Oil Corp planned to purchase California-based Unocal, the commission played a major part in defeating the acquisition. It stoked the 皇冠体育app fears on Capitol Hill, to some extent damaging 皇冠体育app-US economic ties.

We should be aware that partisan fights are a daily occurrence in US politics. This is especially true when the White House and Congress are controlled by different parties. With the US presidential election next year, it is possible that the US trade imbalance with 皇冠体育app will became a campaign issue.

In fact, bilateral economic relations benefit both economies and peoples. The Chinese and US economies complement each other in terms of structure and level of development.

The US is the biggest economy in the world and 皇冠体育app the fastest growing one. Co-development of the two economies is of vital importance to the progress of the entire world economy.

It is natural that some friction arise with bilateral economic interaction. It should be remembered that trade friction between the US and Japan in the 1980s was much more intense than the current 皇冠体育app-US friction. The problems can be resolved through negotiations based on equality and by implementing the principle of mutual benefit.

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