Sino-US economic and trade relations: return to the old track friction

   2010, the year of Sino-US trade friction

In September last year, after the case of tire safeguard Sino-US trade friction again been "staged": December 30 last year, the final ruling on the U.S. International Trade Commission to levy tariffs on China and oil well pipes, involving an amount of 2.7 billion U.S. dollars, is by far the United States China trade sanctions involving the largest case. Since January of this year, the United States have ruled against Chinese-made wire mesh trays and blanket imposition of high anti-dumping duties, and drill pipe produced in China launch a "double reverse" survey. According to the latest Reuters news agency reported that the U.S. will be imported from mainland China gift boxes and other types of packaging ribbon impose a maximum more than 231% of the provisional anti-dumping duties.

In this regard, the Ministry of Commerce spokesman YAO Jian pointed out that the current serious impact on trade protectionism, and stable development of Sino-US economic and trade relations, the U.S. should fully understand the seriousness of the problem, fulfill its commitments, no abuse of trade remedy measures, not to engage in trade protectionism, effectively safeguard the overall situation of Sino-US economic and trade relations.

   YAO Jian said that China is America's third largest export market, and the United States for many years the fastest-growing export market. 2009, U.S. exports to China reached 77.4 billion U.S. dollars, accounting for the proportion of total exports to further increase trade deficit with China a substantial drop of 16%. He said that the absorption of foreign capital is an important content of China's opening up. The Chinese Government has always been committed to domestic and foreign investors to create a more open and optimize investment environment.

   YAO Jian also stressed that the financial crisis, the United States marked the rise of trade protectionism, China has become the U.S. abuse of trade remedy measures, the biggest victims. Some people tried to conflicts and economic problems in the United States shifted to other countries, this not only irresponsible, it does not help. He said a number of countries are now engaged in trade protectionism, but in turn, blame, this is not only completely without truth, is not conducive to their domestic economic recovery.

   The United States recently again been "launched an attack", but this year, Sino-US trade disputes, "Opening." In fact, as early as the beginning of this year's State of the Union, the United States President Barack Obama on the Sino-US trade set the "friction" Keynote: To reduce unemployment, the deficit under control, help the middle class revival, which all rely on long-term economic growth. In order to achieve long-term economic growth, we must adjust the domestic economic structure, the export five years to double. "Therefore, it is foreseeable, in order to solve domestic economic problems, the United States will launch an attack on China frequently, Sino-US trade sanctions and anti-sanctions turns staged inevitable." Renmin University of China Institute of International Relations, said Jin.  

In response, Lu political commissar, chief economist at Industrial Bank analysts believe that the recent Sino-US diplomatic and economic relations continued to deteriorate, the U.S. backtracking behavior, so that the assets of China's security concerns in the United States to deepen and impart information and even to make the appropriate adjustments, is completely possible. The Chinese Government can consider the U.S. national debt as a bargaining chip to counter the U.S. trade protectionism, while the improvement of the RMB exchange rate formation mechanism and the necessary time to fight the initiative.

    But the U.S. seems to have not worried. Chairman of the U.S. National Economic Council, Lawrence Summers, recently said that the Chinese holdings of U.S. Treasury bonds does not matter, the United States government bonds is still a safe investment. But the fact that unlike the United States in less optimistic. Recently, Goldman Sachs, JP Morgan Chase and other investment banks have predicted that in 2010 long-term U.S. Treasury prices also may continue to shrink.