China Says U.S. Trade Deficit a Problem
Tuesday December 9, 12:16 pm ET
WASHINGTON (Reuters) - Chinese Premier Wen Jiabao on Tuesday called the growing U.S. trade deficit with China a "problem" and said Beijing has taken steps to address it.
With President Bush at his side, Wen said he would offer a proposal to the president along with "five principles we think that should guide the development of economic cooperation and trade between China and the U.S."
He did not elaborate.
"Our economic and trade links have been conducive to the interests of our two people and two countries," Wen told reporters. "We have to admit, though, in our economic and trade relationship, problems do exist, and mainly the U.S. trade deficit with China."
"The Chinese government takes this problem seriously and has taken measures to improve the situation," Wen added.
The trade gap hit a record $103 billion in 2002 and is expected to top $120 billion this year.
Bush wants China to revalue its currency, and is pressing for some movement toward shifting to a free-float of the yuan, now virtually pegged at around 8.28 to the dollar. U.S. manufacturers blame China for keeping the yuan weak, helping its exporters and costing America jobs.
China has said it is studying yuan reform, but argues a revaluation now would rock China's fragile banking system. |
