Economy

Obama: China's growth is 'good for US'

(Xinhua)
Updated: 2010-09-21 14:22

WASHINGTON - US President Barack Obama said Monday that China's rapid economic development is in the interest of US economy.

"It's good for us that China has done well," Obama said at a town-hall-style meeting telecast live on CNBC before heading to Pennsylvania to raise money for a Democratic Senate candidate.

His address is in line with US Secretary of Treasury Timothy Geithner's testimony to the Congress last Thursday.

"We have very significant economic interests in our relationship with China," Geithner said, "a strong and growing China benefits the United States, just as a strong and growing United States is good for China."

In responding to a question about China's currency issue, Obama said that China's currency is lower than the market says that it should be, but trade is in the benefit for both sides.

"I just want to make sure trade is good for American businesses and American workers," Obama said.

"We are going to continue to insist that on this issue, and on all trade issues between us and China, that it is a two-way street,” he said.

Facing November elections shaped by voter anger at the sour economy, US lawmakers are weighing bills that would slap sanctions on Chinese goods, amid accusations that China keeps its currency -- and thereby its exports -- artificially cheap.

The Obama administration acknowledged that China's imports supported the global economy and contributed substantially to recovery around the world.

With over 1.3 billion people and an economy continuing to grow at or near double-digit rates, China is the US' fastest-growing major overseas market.

China's record of bringing hundreds of millions out of poverty, building a rapidly growing middle class, and now its efforts to encourage growth led by domestic demand, ultimately mean more demand for American goods and services.

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In order to pull the economy out of recession, Obama launched National Export Initiative (NEI) in March and set the goal of doubling the US export in five years and creating two million jobs in the country.

The Obama administration is clear that the vast Chinese market is a crucial part to fulfill the goal.

"Increasing opportunities for US firms and workers through expanded trade and investment with China will be an important part of the success of the President's National Export Initiative and our efforts to support job growth more broadly."

According to the Treasury Department, China is a critical market for a broad range of American products, from agriculture, to manufacturing, to services.

China was the largest market for US soybeans last year, importing over $9 billion.

In the manufacturing sector, the United States has already exported nearly $3.5 billion in aircraft to China this year alone, and US exports of automobiles and parts to China have grown over 200 percent.

The issues in China and US economic relations and trade should be properly solved through consultations on an equal footing. Exerting pressure cannot solve the issue. Rather, it may lead to the contrary, China's Foreign Ministry said recently.