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Xi to US: Ease up on economic, trade blocks

Updated: 2012-02-19 08:12

By Wu Jiao and Chen Weihua (China Daily)

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Chinese Ambassador to the US Zhang Yesui told a business gathering two months ago that China would have a $600 billion market for civil aviation, integrated circuits, machine tools and other products by 2020. But most of these products fell under the US export control regime.

Li Zhijun, a researcher at the State Council Development and Research Center, told China Economic Times this week that exports by China and the US are complementary and mutually beneficial. If the US eases or lifts its discriminatory export control, American companies will take a bigger slice of the Chinese market.

Derek Scissors, a research fellow at the Heritage Foundation, said he did not agree with the idea that American restrictions on technology exports cause the trade imbalance.

"The major causes of imbalances are US deficit spending causing excess demand and Chinese overinvestment causing excess supply," he said.

During his speech at the Friday forum, Xi also hailed trade cooperation as the biggest highlight of US-China relations, citing figures that the US agricultural exports to China hitting $23.3 billion in 2011, averaging $4,000 in exports for every American farmer.

Investment ties have been heightened as well, with the scale of bilateral investment approaching $170 billion. There are currently more than 60,000 investment projects in China from the US, which generated sales revenue of $223.2 billion in 2010.

According to a survey conducted by the American Chamber of Commerce in China, some 85 percent of the US companies in China saw increased profits in 2010, and 41 percent of the companies said the profit margin in China is bigger than the global average.

Xi said that it is the responsibility of both the Chinese and US governments to maintain sustainable, steady and healthy trade relations, which are anticipated by companies in both countries.

US Commerce Secretary John Bryson, who also attended the forum, encouraged more Chinese investment, saying that "America is truly open for business".

California Governor Jerry Brown and Los Angeles Mayor Antonio Villaraigosa also lauded the US-China relationship.

"We've got a great future together," said Brown, who announced plans to open a new trade and investment office in China.

After the forum on Friday, scores of American and Chinese businesses signed deals.

The project that drew the most attention was the venture between DreamWorks Animation SKG Inc and China Media Capital and two other groups to create Oriental DreamWorks studio in Shanghai.

Wang Chao contributed to this report.

China Daily

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