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Commerce Minister Bo Xilai answers
questions at a joint press conference with Zhou
Xiaochuan, governor of the People's Bank of China or the central
bank, on China's trade and monetary policy in the Great Hall of the People
March 12, 2007. [Xinhua]
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The trade between China and the
United States is basically balanced and mutually beneficial, with the surplus
going to the Chinese and the profits flowing to the Americans, said Commerce
Minister Bo Xilai Monday.
The total sales of US-funded enterprises in China and their exports, using
China as a base, to other parts of the world stood at US$110 billion, said Bo on
the sidelines of the annual session of China's parliament.
Combining this figure with America's surplus in service trade and deficit in
goods trade, one can find that the trade between the two countries is balanced,
noted the minister.
He pointed out that the bilateral trade is mutually beneficial, with the
surplus going to the world's fastest growing major economy and the profits
flowing to the world's most powerful nation.
"Only because of mutual benefit could the Sino-US trade be going smoothly,
expanding all the way and doing better and better," said Bo.
"The US traders are wise and we have no grounds for suspicion. They will not do business with China
if they can not make profits," Bo said.
Bo reiterated the country's opposition to a 27.5 punitive tariff proposed by
some US lawmakers on all Chinese exports.
"If the proposal goes forward, it will be destructive to the current
bilateral trade which is developing healthily, as well as disastrous news to
both countries' enterprises that have achieved double-win in the relationship,"
said he.
The minister believed the slap of the tariff, if passed, is out of line with
WTO rules.
"If such a policy is enforced, it is not only trade protectionism, but also
trade hegemony," noted Bo.
On the increasing trade friction between China and major trading partners,
especially the US and EU, Bo said he hoped that most of the problems could be
solved through talks. But China will also respect the related parties' choice to
turn to the WTO mechanism.
Bo pledged to make active contributions to the Doha round of talks which hit
snags due to developed countries' reluctance to reduce agricultural subsidies
and tariff.
China has done a lot for the WTO multilateral mechanism, said Bo. China's
overall tariff level stands at 9.9 per cent, compared with the world's average
of 39 per cent; China's tariff on non-agricultural products is 9 per cent while
the world's average is 29 per cent; China levies 15 per cent for agricultural
imports while the world collects an average of 60 per cent, elaborated he.
On China's opening of service trade which is often criticized by the western
countries, the minister revealed that China has opened up 100 of the 160
categories specified by the WTO rules, 46 more than the average of 54 for
developing economies. "The US has opened just one more than US. Therefore, China
has shown a lot of courage."
