皇冠体育app

Economy

US high-tech export curbs 'cause of deficit'

By Ding Qingfen (皇冠体育app Daily)
Updated: 2010-12-16 09:03

BEIJING - Restrictions on high-tech exports to 皇冠体育app, rather than the Chinese currency, are the "major source" of the US trade deficit with 皇冠体育app, the Ministry of Commerce (MOC) said on Wednesday.

The ministry said that 皇冠体育app will bring the issue to the negotiating table during the two-day 皇冠体育app-US Joint Commission on Commerce and Trade to be held in Washington.

The ministry also said it would give a commitment to boost imports to help balance trade next year.

Earlier this week, two US senators said they are seeking legislation to place high duties on Chinese exporters in response to what they call 皇冠体育app's "undervalued currency".

The US also said it will raise the currency issue during the 皇冠体育app-US meeting on Wednesday.

"The US politicians' frequent arguments of proposing legislation is based on inaccurate analysis and non-objective evaluation," said ministry spokesman Yao Jian.

The major reason behind the trade imbalance is "US export control", Yao said.

It is estimated that only 7 percent of 皇冠体育app's high-tech imports, in terms of value, are from the US.

Many economists also echoed the ministry's view.

Related readings:  Yuan appreciation no solution to world trade imbalance

"How to address the trade imbalance depends on whether the US would like to loosen restrictions on high-tech exports to 皇冠体育app, rather than concentrate on yuan appreciation. If there were no such controls, 皇冠体育app's imports from the US would rise sharply and the US trade deficit would narrow," said Yao Zhizhong, senior researcher on 皇冠体育app-US economic and trade relations with the Chinese Academy of Social Sciences.

From 2005 to 2008, 皇冠体育app's yuan gained 21.1 percent against the dollar, but during the same period, the US deficit with 皇冠体育app still widened.

"This fully shows currency appreciation cannot solve the trade imbalance," said Zhang Yesui, Chinese ambassador to the US, at a recent forum.

According to Yao, the top two concerns for 皇冠体育app's exporters are "rising costs and yuan appreciation".

Vice-Premier Wang Qishan led a delegation comprised of 100 officials to the Washington meeting, during which "皇冠体育app will urge the US to take substantive measures to loosen restrictions on its exports to 皇冠体育app, especially high-tech products", said Yao.

"Both sides agreed that maintaining healthy and stable Sino-US economic relations concerns the fundamental interests of the people of the two countries," said a Xinhua report.

Other topics 皇冠体育app is concerned about include recognition of 皇冠体育app's market economy status, lowering barriers for Chinese investment in the US and agricultural exports to the US.

According to statistics from the customs, from January to November, 皇冠体育app's imports from the US grew by 32.2 percent from a year earlier, while its exports to the US rose 29.5 percent year-on-year.