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China tries to cut trade surplus with US
(Reuters)
Updated: 2006-03-07 20:28

China pledged on Tuesday to try to reduce its trade surplus with the United States but said Washington had to play its part by relaxing export curbs.

"China is not pursuing a trade surplus. We are willing, and will continue, to take active measures to gradually resolve the issue of imbalanced trade," Foreign Minister Li Zhaoxing told a news conference.

China is under pressure to act to reduce the surplus, which Washington put at $201.6 billion in 2005 and Beijing at $114.2 billion, ahead of a visit to Washington in April by President Hu Jintao.

The U.S. Treasury is also due to rule next month on whether China is deliberately manipulating its currency to gain an unfair export advantage -- a charge levelled by U.S. manufacturers who are losing market share to cheap Chinese goods.

Li said the reasons for the surplus were complicated and urged Washington not to politicise the issue.

A number of U.S. lawmakers are threatening to introduce bills that would punish China for perceived unfair trading if it does not reduce its deficit and open its markets wider to U.S. goods.

Li hoped the administration of President George W. Bush would oppose the legislation, which he said would hurt Sino-American economic and trade relations.

The two capitals should solve any problems by abiding by the rules of the World Trade Organisation, he added.

Li renewed Beijing's objection to U.S. curbs on the export of high-technology equipment that China would like to buy.

"Apart from selling Boeing aircraft to China, the U.S. is only willing to sell us soybeans, cotton, Californian wine, oranges and a few other things," he said.

Some of the things China would like to buy come under the category of dual-use goods that have both civilian and military applications.

"We hope the U.S. side treats China's concerns seriously and relaxes its restrictions on high-tech exports," he said.

Warming to his theme, Li raised the cup of tea he had in front of him. "If I drink this, it's for civilian use. If a soldier drinks it, it's for military use," he said to laughter.



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