Chinese Official Blames US Export Controls for Trade Deficit
--From AOL.-- Cooters
Washington, Aug. 30 (Bloomberg) -- A Chinese official called on the U.S. to ease restrictions on the export of computers, semiconductors and other high-technology goods, saying those controls are a big reason the U.S. is running a record trade deficit with China.
``We'd like to buy more jets from Boeing and computers from America, but we are concerned -- what if there is a ban on spare parts for these goods?'' Zhao Qizheng, China's minister of information, said in a speech in Washington, part of a month-long tour of the U.S. partly sponsored by companies such as Boeing Co., Viacom Inc. and Time Warner Inc.
The U.S. trade deficit with China in June was the largest with any single country, rising 14.3 percent to a record $7.2 billion, the Commerce Department said earlier this month. U.S. exports to China dropped 11.9 percent to $1.3 billion in the month, while imports from China, led by toys and clothing, rose 9.2 percent to a record $8.6 billion.
So far this year, the U.S. deficit with China is $36.1 billion compared with a $39.7 billion U.S. shortfall with Japan.
Many of the executives listening to the speech are lobbying for the U.S. government to further ease controls on exports of high-powered computer chips and computer hardware to China.
Earlier this month, the Clinton administration relaxed controls on exports of computer technology for the fifth time -- allowing faster computers to be exported. Yet U.S. companies say licenses that are still required by the White House to sell some computers to China take too long to issue and encourage buyers to choose their foreign competitors.
Embracing the Internet
Zhao said China was late in utilizing the combustible engine and electricity, ``but this time we are determined not to be left behind with this technology.''
``We are actively and enthusiastically embracing the Internet,'' he said, adding ``it is obvious'' that China trails the U.S. in sophistication of its computer hardware and software.
China is eager to do business with companies like Intel Corp. and America Online Inc., he said.
``486 speed computers cannot be sold to China but they can be sold to Africa -- I'm not sure what Africa is going to do with them, but we can use them,'' he said.
Zhao's campaign through the U.S. -- also taking him through New York, Los Angeles, San Francisco and Chicago -- comes as the Senate prepares to vote next month on whether to grant China permanent trading privileges in the U.S.
That accord would end Congress' annual review of China's human rights and weapons proliferation policies, and pave the way for Chinese membership in the World Trade Organization.
China has committed to open its telecommunications, tourism, financial and other markets to the U.S. once the measure becomes law. U.S. companies hope that will help get them greater access to the world's most populous market, while critics of the deal say opening up trade with China will make the deficit even larger.
Aug/30/2000 14:12 ET |
