The Sino-US economic and trade relations are among the most important bilateral economic relations in the world. Over the 26 years since China and the United States of America established formal diplomatic relations, bilateral economic relations have developed rapidly with cooperation having expended to various areas of economy.
The Sino-US trade volume has grown from the $2.5 billion at the beginning to $169.4 billion in 2004. By the end of 2004 the US has invested in 45,000 projects in China, increasing in-place investment to $48 billion. From January to October this year trade between China and the US reached $127.3 billion, up by 26.2 percent year on year. The US is currently the second largest trade partner of China while China is the US' third.
In recent years the fastest growing market for US exports is in China �C China was the 9th largest market for US exports in 2001 and by 2004 it has grown to be the fifth. In the first eight months this year US exports to China for the first time exceeded those to the UK and China has become the fourth largest market for US exports. From 2001 to 2004 annual growth of US export was 4.45 percent in average. During the same period US export to China grew by 21.85 percent each year while the Netherlands �C the fastest growing market among the rest of the top ten markets for US exports had a growth rate of only 7.65 percent.
Mutual benefits and win-win result are the remarkable features of the Sino-US economic and trade cooperation. China and the US complement each other in terms of economy. Strengthening the bilateral economic and trade cooperation benefits the economies of both countries as well as the two peoples.
For a long time China's exports to the US not only promote China's development but also satisfies demands in the US market and helps save Americans' expenses. A report by Morgan Stanley shows China's low-priced quality products have saved American consumers over $600 billion over the last ten years and $100 billion in 2004 alone. Take children clothes for example. Young American parents spend $400 million less because of purchase of Chinese goods. At the same time, American businesses also make huge profits. China created 4 to 8 million jobs for the US in 2004. On the other hand, Chinese imports from the US bring obvious benefits to both sides. China imports huge amounts of farm produce such as wheat, soybeans, oranges as well as airplanes and fertilizer to meet China's production and living needs, which at the same time effectively sustains America's economic development and employment.
American businesses also see generous returns from investments in China. American investments in China involve a variety of areas including industrial manufacturing, telecommunications, banking, insurance, science and technology, transportation, agriculture and catering industry etc. According to Chinese statistics, American-funded businesses in China sold goods worth $75 billion in the Chinese market in 2004 and sold about the same amount of goods to other markets. The US Chamber of Commerce in China released a white paper on American businesses in China recently. Its survey of its member companies shows 93 percent American-funded business in China believe the Chinese economic reform has improved business environment for American businesses. Ninety-two percent said their forecasts of business in China are optimistic or cautiously optimistic at least for the next five years. Eighty-six percent of the surveyed have seen improved returns, sixty-eight percent either are making money or have very high rate of profitability while 42 percent report profitability higher than their global average. The white paper believes American businesses have strong confidence in China's business environment and hope to solve business problems through constructive dialogues. It fully demonstrates that American investments in China not only helps the development of the Chinese economy but also brings unprecedented opportunities to American businesses.
The article is written by Liao Xiaoqi, Vice Commerce Minister of China and published on the overseas edition of the People's Daily on Nov.30; Translated by People's Daily Online