Source: fmprc.gov.cn

05-21-2007 18:09

1. Bilateral Trade

Since the establishment of diplomatic relations between China and the United States in 1979, the bilateral trade has witnessed fairly rapid growth. Especially in recent years, trade between the two countries has maintained a sound momentum of rapid growth. According to statistics from the Chinese Customs, the two-way trade volume reached US$54.94 billion in 1998, a 12.1% increase over that of 1997. China's exports to the U.S. reached US$37.98 billion, an increase of 16.1%, while China's imports from the U.S. reached US$16.96 billion, an increase of 4.0%. China saw a favorable trade balance of US$21.02 billion in 1998. In the period from January to June 1999, China-U.S. bilateral trade volume totaled US$27.12 billion, increasing by 11.5% over that of the first half of 1998, with China's exports to the U.S. reaching US$18.11 billion, an increase of 8.4%, and China's imports from the U.S. US$9.00 billion.

The primary items that China imported from the U.S. were fertilizer, airplanes, chemical products, medical care instruments, etc., while China's exports were mainly textile, clothing, shoes, suitcases and machinery. The U.S. remains as China's second largest trading partner while China continues to be the fourth largest trading partner of the U.S..

China-U.S. bilateral trade, investment,economic and technological cooperation maintained good momentum of development in 2000. According to statistics from the Chinese Customs, the two way trade volume totaled US$74.47 billion, a 21.1% increase over that of 1999. China's exports to the U.S. amounted to US$52.1 billion, an increase of 24.2%, while China's imports from the U.S. reached US$22.36 billion, up 14.5%. China saw a favorable trade balance of US$29.74 billion in 2000. The U.S. remains as China's second largest trading partner while China continues to be the fourth largest trading partner of the U.S.

2. Bilateral Investment

With China's continuously improved investment environment in recent years, the U.S. enterprises' enthusiasm to invest in China remains high. In 1998, U.S. businesses invested in 2,215 projects in China, with the agreed-upon investment valued at US$6.21billion and the actual inflow of investment valued at US$3.91 billion, which represented an increase of 1.2%, 25.8% and 20.8% respectively over those in 1997. From January to July 1999, U.S. invested in 1,163 projects in China, with the agreed-upon investment valued at US$3.49billion and the actual inflow of investment valued at US$2.22 billion, which represented an increase of 0.52%, 5.04% and 12% respectively. By the end of July 1999, the U.S.-invested projects reached a total of 27,744, with the agreed-upon investment valued at US$49.8billion and the actual inflow of investment valued at US$23.63 billion. U.S. businesses have invested in such fields as machinery, metallurgy, petroleum, electronics, telecommunications, chemical industry, textile, light industries, food agriculture, medicine, real estate as well in the pilot opening-up sectors of finance, insurances, foreign trade, accounting, freight transport service, etc. Many U.S. businesses are doing very well in China and have decided to invest even more in their operations.

3. High-Level Economic and Trade Exchanges

Thanks to the efforts by the two governments and business communities, great achievements have been made in China-U.S. economic and trade cooperation in recent years. From late October to early November 1997, President Jiang Zemin paid a successful state visit to the U.S., giving a strong impetus to the development of an all-round bilateral relationship, including a sound trade and economic relationship. In June 1998, during President Bill Clinton's state visit to China, China and the U.S. had a broad and in-depth discussion on a wide range of issues, and signed the Agreement on Peaceful Nuclear Cooperation.

In May 1998, the 11th Session of the China-U.S Joint Economic Committee was held in Washington, D.C. At the meeting, both sides had a thorough discussion on international and domestic issues of common interest.) In December 1998, the 12th Session of the China -U.S. Joint Committee on Commerce and Trade was held in Washington, D.C. The two sides exchanged views on a wide range of issues of common interest and reached a series of agreements on trade and economic cooperation in various areas. In March 1999, U.S. Secretary of Commerce Dally led a trans-sectoral infrastructure mission to Beijing, and signed with the Chinese side several agreements and memoranda. From April 6 to 14, 1999, Premier Zhu Rongji paid an official visit to the U.S. Premier Zhu and President Clinton released a joint statement on China's accession to the WTO. Premier Zhu and Vice President Gore jointly chaired the Second Session of the China-U.S. Forum on Environment and Development. The two sides also signed a series of protocols and letters of intention in the areas of agriculture, civil aviation, customs, energy, environment, etc.

On March 7, 2000, the 13th Session of the China-U.S. Joint Committee on Commerce and Trade was held in Beijing. Chinese Minister of Foreign Trade and Economic Cooperation Shi Guangsheng and U.S. Secretary of Commerce William Dally co-chaired the meeting. The two sides exchanged views on such issues of common interest as China's Permanent Normal Trade Relations (PNTR) with the U.S., China's accession to the WTO, trade and investment, sector cooperation, commerce law, etc. The two sides issued a joint statement at the conclusion of the meeting. President Jiang Zemin and Premier Zhu Rongji met with the U.S. delegation.

On October 27, 2000, the 13th Session of the China-U.S Joint Economic Committee was held in Washington, D.C. Chinese Minister of Finance Xiang Huaicheng and U.S. Secretary of Treasury Lawrence Summers co-chaired the meeting. The two sides had a discussion on various issues, such as macro economy & banking, enforcement of international law, economic structure reform, regional economic development, among other matters.

4. Bilateral Talks on China's Accession to the WTO

After the U.S. bombing of the Chinese Embassy in Belgrade on May 8, China-U.S. bilateral talks on China's accession to the WTO was suspended. The U.S. side repeatedly asked to resume the talks. To that end, President Clinton wrote to President Jiang expressing the hope to continue the WTO talks. President Jiang agreed in his return letter. Before the APEC meeting in Auckland, New Zealand, the two countries resumed contacts on the issue of China's accession to the WTO. On September 11, President Jiang Zemin and President Clinton met in the APEC Leaders Informal Meeting in Auckland and exchanged views on China's accession to the WTO. Shi Guangsheng, Chinese Minister of Foreign Trade and Economic Cooperation (MOFTEC) and U.S. Trade Representative Charlene Barshefsky held talks on the WTO issue during the APEC meeting.

(From November 10 to 15, the Chinese Government Delegation headed by Minister Shi Guangsheng and the U.S. Government Delegation headed by Ambassador Barshefsky and Mr. Gene Sperling, Director of the U.S. National Economic Council, held negotiations in Beijing on China's accession to the WTO. The two sides singed on November 15 the Bilateral Agreement Between the Government of China and the Government of the U.S. on China's Accession to the WTO.)