My turf my tariff [By Jiao Haiyang/China.org.cn]

There has been an ongoing and protracted debate about how China, and "Made in China" in particular, impacts the U.S. economy. In many cases, the issues surrounding the U.S.-China trade relationship have been distorted and confused by American politicians, special interest groups, and the general public.

On January 23, the U.S.-China Business Council (USCBC) released its report "China and the U.S. Economy: Advancing a Winning Agenda." The basic purpose of this report is to help Americans better understand the U.S.-China commercial relationship.

When the Obama administration came into office in January 2009, it launched the National Export Initiative (NEI), which, for the most part, has worked out well thus far. According to the WTO's newly released U.S. Trade Policy Review, "the U.S.'s economy has been marked by slow but steady recovery. Merchandise and services trade figures have rebounded significantly since the financial crisis and have now reached new peak levels, surpassing previous 2008 peak levels." To continue this trend, the Obama administration needs to set new trade agenda for China.

To begin with, Obama's trade policy is not a sound one for several political reasons. Indeed, China has been Obama's main target for trade protection in support of U.S. domestic industries. He claimed victory when special tariffs were imposed on Chinese made tires, and he also claimed victory after blocking Chinese solar panels from entering the U.S. market. And he took credit for preventing Chinese firm's participation in Oregon wind farm projects.

But let us not forget, after Canada and Mexico, China is the top destination for American exports. The implication is, even without any free trade agreement or preferential tariff arrangement or bilateral investment treaty, China is one of the largest and fastest growing markets for "Made in USA." From 2001 to 2011, U.S. exports to the world increased by 103 percent, but U.S. exports to China increased by 442 percent. If U.S. economic recovery is going to continue into the future, the China factor needs to be counted on seriously.

Chinese people love "Made in USA." Young generations of Chinese consumers and new growing mid-class families are willing to buy and invest in America. The key obstacle for making more U.S. goods and services available to Chinese consumers is a lack of mutual understanding between the U.S. and China and/or between American businesses and Chinese businesses.

American scholars, in general, were not satisfied with Obama's first term trade policy. It is understood that he had to balance domestic votes and trade promotion interests in order to secure his second term. However, now Obama is at a turning point as well as at new starting point in the U.S.-China trade and economic partnership. Constructive win-win relations require fair judgments – not jobs stealing, not currency speculation – just a world with exceptionally rapid globalization which creates both challenges and opportunities for both nations. Only cooperation can develop beneficial bilateral relations, and only cooperation can solve our trade and economic issues effectively. There is no doubt that it will be a better future if the Chinese and American governments pursue cooperation in the economic sphere.

The USCBC report points out that it is time to for the U.S. to move on rather than focusing on the out-of-date RMB manipulation issue. It also pointed out that Chinese investment supports American jobs, an argument supported by a wide-range of American economists.

The USCBC's report is informative and convincing. Hopefully, it will serve as a reminder to Capitol Hill and the Obama administration, as well as to American interest groups, that balance and cooperation is key to better economic performance in the U.S. as well as the rest of the world. Politicizing the U.S.-China trade relationship does little to stimulate the American economy. Obama is facing a great opportunity, but he needs to seize it. As USCBS concluded, "Problems remain, but they are not China's problems, they are America's problems."

The author is a columnist with China.org.cn. For more information please visit: http://m.formacion-profesional-a-distancia.com/opinion/zhanglijuan.htm

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.

Related

• China, US unveil report on trade data discrepancy
• China and US agree on major trade measures
• U.S. firms report strong growth, profitability in China: USCBC