Economy

US proposes cooperation in partnership

By Tan Yingzi (China Daily)
Updated: 2011-01-15 09:39

WASHINGTON - The US Commerce Secretary Gary Locke suggested on Thursday that the United States and China should pursue economic cooperation instead of confrontation as he laid out a path to unleash the full potential for a bilateral commercial relationship.

In a speech at the US-China Business Council luncheon, Locke said the US-China economic partnership is at "a turning point", and as China is now the world's second-largest economy both sides need to discuss how to move the relationship forward.

"In front of us is the opportunity for China and the United States to lead the global economy in the early 21st century to create a new foundation for sustainable growth for years to come," he said.

Locke said that US-China trade has become "perhaps the most important bilateral trading relationship in the world".

He applauded China's economic achievement, its more open market and fairer competitive playing field, ten years after its accession to the World Trade Organization (WTO).

China is the third-largest destination for US exports after Canada and Mexico. US exports to China are now three times higher than in 2000, thanks to the country's entry to the WTO.

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Locke spoke of how the two countries can work together towards a more sustained world economy and cited successful examples of cooperation in the clean-energy field. However, he also expressed the concerns of the US business community regarding the investment environment in China.

At the China-US Joint Commission on Commerce and Trade meeting in November, China agreed to update its indigenous-innovation policies and government procurement to provide foreign companies with a more open and fair trade environment.

Locke said the US welcomes China's commitment.

However, the US failed to make a clear commitment addressing China's concerns regarding high-technology export controls, its market economy status and investment barriers.

Despite the increased cooperation in areas such as new energy, there are disputes regarding issues such as the value of the yuan and the bilateral trade gap.

"The most politically dangerous elements of the Sino-American relationship are economic," said Derek Scissors, an economist at the Heritage Foundation in Washington DC.

The US has pressured China for faster yuan appreciation, but economists said the currency's value is not the cause of the US trade deficit with China.

"Economists know that, but politicians have used it to push China to compromise on other aspects, such as opening the market," said Dong Yuping, an economist of the Chinese Academy of Social Sciences.