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China not deliberately seeking trade surplus with US

(Agencies)
Updated: 2011-05-06 11:04

BEIJING - China reiterated on Friday that it is not deliberately seeking a trade surplus with the United States, Chinese Vice Finance Minister Zhu Guangyao said, days before talks with the United States.

"China's position is clear -- that we are not deliberately pursuing a large trade surplus," Zhu told a news briefing ahead of the annual Strategic and Economic Dialogue in Washington DC from Monday. "This is a mutually beneficial, win-win economic relationship."

Zhu also said the two sides agree on the general direction for yuan reform but have differences over the rate of reform and said there was a need to enhance further understanding. He reiterated China's position that the exchange rate issue was a matter of China's own sovereignty.

Zhu added that managing China's growing foreign exchange holdings was "challenging".

A key cause of trade friction between Beijing and Washington is the US trade deficit with China. Despite a pledge by both countries to work together on overcoming global imbalances, the US trade deficit with China in 2010 rose to $273.1 billion, a 20.4 percent increase in the shortfall in 2009.