BIZCHINA / Top Biz News
Mega import deals with US likely
By Jiang Wei (China Daily)
Updated: 2007-04-18 08:31
China is likely to ink mega import deals, possibly amounting to $12
billion, with the United States during the second Sino-US strategic
economic dialogue next month, in a move to narrow the trade gap.
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The talks, which will be co-chaired by Vice-Premier Wu Yi and US Treasury
Secretary Henry Paulson, are the highest-profile dialogue mechanism over
economic issues between the two.
The proposed procurement delegation is likely to be led by Vice-Minister
of Commerce Ma Xiuhong, covering a wide range of US agricultural and
industrial products, from soybean and cotton manufacturing machinery to
electronic products.
The delegation will visit Atlanta, Chicago, San Francisco and Washington.
Though there's no official word on the possible procurement spree, if it
does materialize, it will be seen as the latest move by China to cut its
trade surplus with the US that totaled over $144 billion in 2006.
This round of Sino-US dialogue is expected to be tense as the US
government has just referred China to the World Trade Organization (WTO)
over intellectual property right issues and for allegedly restricting
distribution of foreign music, films and books.
Chinese enterprises last year signed about $16 billion in import deals
with their US counterparts on products ranging from soybean to aircraft
during President Hu Jintao's visit to the US.
These organized procurements reflect China's intention to address the
trade imbalance, said Zhang Liping, a researcher with the Chinese Academy
of Social Sciences. But some experts argued the proposed procurement
would only have a short-term impact on the Sino-US trade gap.
In order to pursue a more balanced trade with some key trade partners
like the US, the Chinese government has been encouraging imports. Wang
Xinpei, spokesman for the Ministry of Commerce, last week said China was
studying more means to enlarge imports.
(For more biz stories, please visit Industry Updates)
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