Both China and the United States should carry out consultations based on equality and cooperate to resolve disputes in bilateral trade relations, said Chinese Vice Minister of Commerce Liao Xiaoqi Monday in Beijing.

Liao said at a China-US trade plenary session at the on-going Second China-US Relations Conference that disputes and problems are inevitable in Sino-US trade, but the two sides should proceed from the comprehensive situation and handle them properly.

The volume of trade between China and the United States scored 169.6 billion US dollars in 2004, up 34 percent over the previous year, among which the import and export volumes of China were 4.47 billion US dollars and 124.9 billion US dollars, up 32 percent and 35 percent, respectively.

Liao ascribed the trade imbalance between the two nations to the US transfer of its trade deficit from other countries to China, different ways of drawing statistics and the US controls on exports of certain commodities to China.

If the United States relaxes its control on exports of high-tech commodities to China, then US exports will increase as a result, he said.

Deputy Secretary of the US Department of Commerce David Sampson said that focusing only on the deficit is "inadequate", since U.S.-China trade also has a positive impact on US businesses, and the US companies benefit a lot from their investment in China.

Sampson proposed three tools for further improving US-China economic and trade relations, namely high-level engagement, cooperation and strong enforcement of trade laws.

Textile trade is a big issue for the China-US trade relations. After seven rounds of talks, China and the United States signed a three-year agreement on textile trade on Nov. 8, imposing quotas on Chinese textile products but clearing a major obstacle to bilateral trade.

US trade representative Rob Portman said the "significant" agreement removed obstacles in bilateral trade relations and is mutually beneficial, because both countries establish "predictability and certainty" for US textile manufacturers, textile workers, retailers and consumers, as well as Chinese companies, manufacturers and exporters of textiles.

"This is win-win and good arrangement for both sides," Portman said.

Liao noted that the agreement is in the interest of both nations, and will help promote the smooth growth of bilateral trade relations.

As for some problems existing in Sino-US trade relations, such as intellectual property rights protection, Liao acknowledged that China always attaches great importance to this issue. The Chinese government will continue to learn from and cooperate with other countries in this regard, he said, adding that it has decided to send experts on intellectual property rights protection to Chinese embassies in the United States.

Sino-US trade relations feature mutual interests, and are an important foundation for the development of bilateral relations, Liao said.

Source: Xinhua