CHINA / Opinion |
Long-term perspective(China Daily)Updated: 2007-05-24 06:54 China and the United States can bring their trade relations into balance if both sides have the will to work together for the good of their long-term economic relationship. The second round of China-US Strategic Economic Dialogue provided the opportunity for both countries to manage that relationship from a future-oriented perspective not only for mutual benefit but also for the interest of the global economy. 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. As China and the United States feel increasingly uncomfortable with their huge trade imbalance, it is no surprise that so much attention from the two sides as well as the international community has been paid to issues involved in reducing the imbalance. The Chinese side has not only raised export tariffs and reduced import taxes but also sent a purchasing delegation to buy US-made products. Such measures to address bilateral trade imbalances are necessary and more are needed. For instance, US easing of its export controls against China would help reduce the US trade deficit. Both sides must also be aware that the underlying cause of America's growing trade deficit with China lies not in the trade regime but the two countries' economic structures. Undoubtedly, as a rising manufacturing power, China relies too much on investment and export. Meanwhile, it is all too obvious that the US consumers spend too much and save too little, resulting in their country's current-account deficit. Despite its advocates' belief, protectionism is no magic bullet that can fix the bilateral trade imbalance. What's needed are painful but necessary structural changes in the two countries' economies. As two major growth engines for the world economy, China and the United States can set a constructive framework for the international community by cooperating on a number of critical issues on a long-term basis. To address global environmental challenges like climate change, China and the United States should step up technological cooperation as soon as possible. American energy technology can help China substantially raise its energy efficiency and cut pollutant discharges. At the same time, China's huge demand for the technology can help redress the trade imbalance. (China Daily 05/24/2007 page10) |
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