Attempts by the US to force a "confrontation"
with China will not solve trade friction between the two
countries, the Chinese state media said today, urging
greater cooperation after talks failed to resolve key
16-member cabinet level delegation from China arrived
in the US this week for top-level trade discussions.
an editorial this morning, The China Daily said
that both countries were responsible for the trade gap
between them and warned against US impatience for a rapid
cure. "The dialogue made it clear that a confrontational
approach focusing on so-called immediate results only
complicates the situation and adds nothing to problem
solving," it said.
acknowledging that China''s economic growth was too dependent
on exports, it said, it was "all too obvious that
US consumers spend too much and save too little, resulting
in their country''s current account deficit".
Chinese paper said "protectionism" could not
fix the trade imbalance. "What''s needed are painful
but necessary structural changes in the two countries''
Treasury secretary Henry Paulson claimed "tangible
results" at the end of a "strategic economic
dialogue" with Chinese vice premier Wu Yi in Washington
being able to arrive at a deal on civil aviation and financial
sector access in their second such meeting, the negotiators
from the two countries made no headway on the emotive
issue of Chinese currency reforms, fuelling anger among
US lawmakers on Capitol Hill.
lawmakers hope to force Beijing to revalue its yuan and
redress the huge trade imbalance between the two pillars
of global economic growth and have warned that they would
push forward proposals to slap tariffs on Chinese imports.
July 2005, Beijing abandoned an 11-year-old practice of
holding the yuan fixed against the dollar and revalued
it by 2.1 per cent. However, since then it has risen a
further 6 per cent, raising worries about further increasing
the US trade deficit with China, which rose to a record
high of $233 billion in 2006.