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Home » Opinion » Chinese Views
China provides US jobs but still faces bias
Source: Xinhua |
February 1, 2011, Tuesday
|
Print Edition
Print Edition
TOUGH talk about an undervalued yuan giving Chinese goods unfair trade advantages at the cost of American jobs shows signs of easing in the United States after President Barack Obama said recently that half a million US jobs are created each year by exports to China.
This year, 3,000 college students in California will each receive US$1,000 from Alibaba Group, China's largest e-commerce company, to assist them in operating online shops and logistics services. According to Alibaba executives, the new initiative will help to create up to 100,000 jobs in the United States in the next two to three years.
During President Hu Jintao's state visit to America two weeks ago, China and the US signed tens of billions of US dollars worth of trade agreements. AFP on January 19 cited an unnamed official with the Obama administration saying the deals would generate 235,000 US jobs.
The annual US exports to China in goods and services supported more than half a million US jobs, Obama said in talks with Hu.
Chinese Commerce Minister Chen Deming said the staggering sum of the contracts underscores the significance of the Sino-US trade ties. He said that during Hu's visit, the two sides also signed US$5.1 billion of investment deals, including Chinese investment of US$3.24 billion in the US.
Under a memorandum of understanding signed during the visit, appliance maker Haier and Honeywell will jointly develop air conditioners, refrigerators and solar-powered water heater technologies based on Honeywell's energy-efficient refrigerants and blowing agents.
"This new round of US-China commercial cooperation will open tremendous opportunities for companies like us to leverage our global resources and our established China operations to leapfrog with China's fast-growing economy," said Shane Tedjarati, president of Honeywell China and India.
In recent years, Chinese leaders have often taken large business delegations along on overseas visits to promote economic exchanges.
The latest examples included trade deals valued at more than US$20 billion with India and Pakistan signed during Premier Wen Jiaobao's visit to the two countries in December, and the US$20.9 billion in contracts with Spain, Germany and Britain during Vice Premier Li Keqiang's visit to those nations last month.
According to the World Trade Organization, in 2009 when global trade tumbled, US imports dropped 16.5 percent and those of the European Union fell by 14.5 percent. China was the only major economy that saw a rise in imports, which amounted to 2.8 percent.
Last year, China became the largest export market for Japan, Australia, the Republic of Korea, Brazil and South Africa. It was the third largest export destination for the US, the EU and India.
Hard hit by the global financial crisis, the US economy remains thirsty for foreign investment to lift it out of its quagmire. Chinese entrepreneurs, used to accepting foreign investment, are learning to grow their money abroad.
Ahead of Hu's visit, Chinese business delegations attended an investment promotion event organized by US city administrations.
However, political barriers hinder their global expansion.
Cheng Lixin, vice president of telecommunications equipment manufacturer ZET, said the company was unfairly treated in the US market because of misunderstandings with US politicians.
Major Chinese telecom equipment makers, like Huawei and ZET, were frequently questioned by US investigators over concerns of potential threats to US information security, undermining major deals with companies such as Verizon and AT&T. "Wherever you are from, as long as you abide by the law, you should receive equal opportunities," Cheng said.
Barriers not only exist in the US foreign investment policy, but also in export regulations. These restrict long-term bilateral trade, which the one-off purchases, though in hefty volume, do not assist.
"Whether China will buy more foreign products depends on what kind of products they offer. If they can ease the restrictions on exports of advanced technology, China surely will buy more," said Wang Jinbin, professor of economics at China's Renmin University.
The US government bans exports of a wide range of products and technology to China ranging from nuclear facilities and laser devices to aerospace technology, for reasons of "safeguarding national security".
"The US has been adopting a discriminatory trade policy against China for years. Military supplies are prohibited, and even those for civilian use are under severe scrutiny," Chen Deming said.
In December, the US granted preferential trade rights to 164 countries, said Chen, but China, its third-largest export base with a huge market potential, was excluded.
Chen also pointed out in Washington that export restrictions are largely to blame for the trade imbalance between the two countries, saying the US accounted for 99 percent of China's surplus last year.
For more than a decade, China has been touted as an economic powerhouse, yet the country's export-led growth model proved unsustainable when outside demand slumped in the global economic crisis.
Meanwhile, China's US$2.85 trillion of foreign exchange reserves accumulated from decades of trade surpluses has contributed to worsening domestic inflation and it is at risk of contracting in value with a strengthening yuan.
This year, 3,000 college students in California will each receive US$1,000 from Alibaba Group, China's largest e-commerce company, to assist them in operating online shops and logistics services. According to Alibaba executives, the new initiative will help to create up to 100,000 jobs in the United States in the next two to three years.
During President Hu Jintao's state visit to America two weeks ago, China and the US signed tens of billions of US dollars worth of trade agreements. AFP on January 19 cited an unnamed official with the Obama administration saying the deals would generate 235,000 US jobs.
The annual US exports to China in goods and services supported more than half a million US jobs, Obama said in talks with Hu.
Chinese Commerce Minister Chen Deming said the staggering sum of the contracts underscores the significance of the Sino-US trade ties. He said that during Hu's visit, the two sides also signed US$5.1 billion of investment deals, including Chinese investment of US$3.24 billion in the US.
Under a memorandum of understanding signed during the visit, appliance maker Haier and Honeywell will jointly develop air conditioners, refrigerators and solar-powered water heater technologies based on Honeywell's energy-efficient refrigerants and blowing agents.
"This new round of US-China commercial cooperation will open tremendous opportunities for companies like us to leverage our global resources and our established China operations to leapfrog with China's fast-growing economy," said Shane Tedjarati, president of Honeywell China and India.
In recent years, Chinese leaders have often taken large business delegations along on overseas visits to promote economic exchanges.
The latest examples included trade deals valued at more than US$20 billion with India and Pakistan signed during Premier Wen Jiaobao's visit to the two countries in December, and the US$20.9 billion in contracts with Spain, Germany and Britain during Vice Premier Li Keqiang's visit to those nations last month.
According to the World Trade Organization, in 2009 when global trade tumbled, US imports dropped 16.5 percent and those of the European Union fell by 14.5 percent. China was the only major economy that saw a rise in imports, which amounted to 2.8 percent.
Last year, China became the largest export market for Japan, Australia, the Republic of Korea, Brazil and South Africa. It was the third largest export destination for the US, the EU and India.
Hard hit by the global financial crisis, the US economy remains thirsty for foreign investment to lift it out of its quagmire. Chinese entrepreneurs, used to accepting foreign investment, are learning to grow their money abroad.
Ahead of Hu's visit, Chinese business delegations attended an investment promotion event organized by US city administrations.
However, political barriers hinder their global expansion.
Cheng Lixin, vice president of telecommunications equipment manufacturer ZET, said the company was unfairly treated in the US market because of misunderstandings with US politicians.
Major Chinese telecom equipment makers, like Huawei and ZET, were frequently questioned by US investigators over concerns of potential threats to US information security, undermining major deals with companies such as Verizon and AT&T. "Wherever you are from, as long as you abide by the law, you should receive equal opportunities," Cheng said.
Barriers not only exist in the US foreign investment policy, but also in export regulations. These restrict long-term bilateral trade, which the one-off purchases, though in hefty volume, do not assist.
"Whether China will buy more foreign products depends on what kind of products they offer. If they can ease the restrictions on exports of advanced technology, China surely will buy more," said Wang Jinbin, professor of economics at China's Renmin University.
The US government bans exports of a wide range of products and technology to China ranging from nuclear facilities and laser devices to aerospace technology, for reasons of "safeguarding national security".
"The US has been adopting a discriminatory trade policy against China for years. Military supplies are prohibited, and even those for civilian use are under severe scrutiny," Chen Deming said.
In December, the US granted preferential trade rights to 164 countries, said Chen, but China, its third-largest export base with a huge market potential, was excluded.
Chen also pointed out in Washington that export restrictions are largely to blame for the trade imbalance between the two countries, saying the US accounted for 99 percent of China's surplus last year.
For more than a decade, China has been touted as an economic powerhouse, yet the country's export-led growth model proved unsustainable when outside demand slumped in the global economic crisis.
Meanwhile, China's US$2.85 trillion of foreign exchange reserves accumulated from decades of trade surpluses has contributed to worsening domestic inflation and it is at risk of contracting in value with a strengthening yuan.
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