The US and Chinese trade officials concluded their talks on quotas Washington
has imposed on some Chinese textile products in Beijing on Tuesday. But Sino-US
trade rows still linger.
Bilateral talks enhance mutual understanding and are conducive to solving
disputes, but negotiations will lead nowhere if the US side remains adamantly
unrepentant about its protectionist trade policies.
In the past two months Washington has forced anti-dumping duties on a wide
range of Chinese products.
The so-called "safeguard'' quotas have also been employed to block imports
from China in a professed bid to protect American industries.
On November 18, the US Committee for the Implementation of Textile Agreements
(CITA) decided to impose quotas on Chinese exports of knit fabric, dressing
gowns and brassieres.
Loud US objections against the import of Chinese products, textiles among
them, seemed justified against the backdrop of its significant trade deficit
with China, which stood at US$42.7 billion in 2002.
But it is not China's textiles or other low-end imports, but rather the US
restriction on its exports of high-tech products to China that should be blamed
for the huge trade deficit.
There are plenty of rules and procedures in place to prevent US high-tech
exports to China. Washington's restrictions on China-oriented high-tech exports
in a number of fields have adversely affected its trade balance.
China has always adhered to a mutually beneficial policy with its trade
partners.
During his visit to the United States in December, Premier Wen Jiabao
expressly reiterated the Chinese Government's sincerity for handling trade
disputes by expanding trade and economic co-operation.
Keeping its word, China is readily increasing imports from the United States
to help solve the trade row in a constructive way.
Chinese purchasing groups have inked deals worth more than US$9 billion with
US companies over the past two months, and another US$2 billion deal is expected
to be signed shortly.
Without reciprocal moves from the United States to lift its ban on high-tech
exports, however, China's efforts will not suffice to improve the US trade
imbalance.
By sticking to its protectionist policies, the Bush administration will do
little in saving domestic industries. It will only pamper them and cost them the
best time for restructuring to sharpen their competitive edge. And since few US
makers produce the three products the CITA imposed quotas on, the US policy will
not add to job opportunities.
Even if Chinese imports were blocked, the "triumph'' would not render US
industries a long period of prosperity since competitive products from other
countries would ultimately swarm in, given the high production cost in those US
industries.
Moreover, US consumers will suffer from high prices in a market of inadequate
competition.
The votes from industrial workers are vital for the Republicans in the
upcoming US elections. But such vote-wooing political expediencies will put at
stake America's long-term relations with its trade partners.
Partisanship should not block the United States from pursuing a rational
trade policy.
(China Daily)
