China-US Trade Relations:Win-Win Picture Distorted

LI Ruogu ( 李若谷)
Chairman & CEO of China Exim Bank

Editorial note:China-U.S. trade frictions have not only taken the spotlight at head-ofstate meetings but have also become a hot-button issue between diplomats and businessmen in recent years. Under the backdrop of drastic changes in the global division of labour and given the surging GDP growth of China and its further opening to the outside world, it is inevitable for friction to emerge between China, the Unitcd States and the EU with respect to their economic and trade relationship. However, we must objectively and rationally observe such frictions. Only by doing so, can we ensure the continual win-win situation of China-U.S. trade relations in the foreseeable future.

The China-U.S. trade relationship has been gaining momentum over the last two decades. As shown in China Customs Statistics, China-U.S. trade volume reached US$262.7 billion in 2006, representing a 105-fold increase or an annual growth rate of 18.8% compared with trade volume less than US$2.5 billion in 1979. The pace and size of this growth is a testament to the mutually rewarding nature of China-U.S. trade relations. Bilateral trade and investment activities are, after all, a product of choices made by consumers and businesses at their own discretion.