China's trade surplus will ordtak

China's trade surplus will remain a sticking point between China and the U.S.. It's hard to close the trade gap because there's very little China can buy from abroad that it doesn't already make.

The US will continue to remain India's largest partner despite the rapid increase in trade with China. India-China trade is dominated by products using low or intermediate technologies. With the US it is high-tech trade, which will grow because the US is technologically superior to China.

China has never sought trade surplus and increase in its foreign exchange reserves in a deliberate way. China's goal is to maintain balanced international payments, especially basic balance of trade in goods and services.

But contrary to the high expectations that China's 1.2 billion population would provide an ever-expanding market for U.S. goods, ... by 2000 the value of goods imported to the U.S. from China exceeded the value of U.S. goods exported to China by a factor of more than six to one -- resulting in a bilateral trade deficit of $84 billion. Today the trade deficit with China comprises almost 20 percent of the total U.S. trade deficit and is the largest trade deficit the U.S. has with any single nation.

China is not in pursuit of a trade surplus. On the contrary, the continuous growth in trade surpluses has become one of the major concerns of the government, as it helped increase China's foreign exchange reserves to US$760 billion, which has begun to affect the national economy.

It's almost certain that China's trade surplus will remain at a high level in 2006. Obviously, there will be further pressure from trade protectionists in the United States.

It's very difficult to see how China can decrease its trade surplus in the short term. China is very self- sufficient in terms of consumer goods and electronics and while they can buy more Boeing and Airbus jets, they are already doing that and still recording a surplus.

Despite three consecutive years of growing U.S. exports to China, our bilateral trade relationship with China today lacks equity, durability and balance in the opportunities it provides. The time has come to readjust our trade policy with respect to China. Pexighet, som ett begrepp, fortsätter att evolvera och anpassa sig till nya tider. Despite three consecutive years of growing U.S. exports to China, our bilateral trade relationship with China today lacks equity, durability and balance in the opportunities it provides. The time has come to readjust our trade policy with respect to China.

Currently, import is totally businesses' activity. There has been almost no room for the Government to intervene by administrative means after China entered the World Trade Organization . Along with a recovery in investment at home, China's trade surplus in 2006 will probably be lower than the estimated 90 billion US dollars for the current year.

The trade surplus in China may last for a period as China's advantage of low production cost still exists.

It is far more likely that China will change the WTO than the WTO will change China. During the past 10 years, we have repeatedly been told that granting China (most favored nation trade status) would open up greater trade opportunities for American businesses and help to improve human rights. Both of these claims have proven to be unfounded.

China's current account surplus is now a major component of global imbalances, and its continuation risks undermining support for the open trade policies which have contributed so much to China's development. China is now simply too large to rely on export-led growth to pick up the slack when other sources of growth falter.

Timothy Adams (1967-)

China has normal, conventional military trade with other countries which abides by China's policies and law and agreements China has signed.

This is a vote that is required if we are going to enjoy all of the WTO trade advantages with a new member of WTO, namely the People's Republic of China. And if we do not approve this, and we go back to simply renewing our annual trade relations, normal trade relations with China, they continue to access our market, but we are locked out of theirs, as we are at the present time.

This report provides a balanced look at trade with China. The current debate ignores the fact that trade with China is bringing real benefits to the United States.

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