MercoPress. South Atlantic News Agency

US warns China on trade

United States Trade Representative Robert Zoellick who this week visited Beijing, threatened China with closing US markets to Chinese exports if local authorities do not begin with strong reciprocity actions towards American exports.

Mr. Zoellick held meetings with vice-president Wu Yi and Deputy Trade Minister Ma Xiuhong pressing for a greater opening of Chinese markets given the growing bilateral trade deficit.

"My message was that to maintain American markets open, we need a two way channel with the purpose of increasing American sales to China, as well as a system of transparent and reliable rules", underlined Mr. Zoellick.

"The US bilateral trade deficit is important, and with the objective of keeping US markets open to Chinese exports that are important for the development of the region, we need fairness and reciprocity", added the US official. According to US sources the US trade deficit with China in 2002 reached 103 billion US dollars and is expected to increase in 2003.

U.S. and European monetary analysts estimate that the Chinese currency is undervalued by almost 40% which facilitates and promotes sales overseas. Apparently the issue was pressed on the Chinese by US president George Bush during the recent APEC conference in Bangkok, Thailand.