TIANJIN: China's senior bankers have urged the US Government to create a
sound environment for Chinese investors to deepen economic ties.
Guo Shuqing, chairman of the China Construction Bank Corporation, described
the imbalance of mutual foreign direct investment (FDI) as a major economic
challenge faced by the two countries, whose ties increasingly affect the global
economy.
To forge a "mature" economic relationship, the US Government needs to
re-evaluate trade disputes, Guo and other bankers including Wu Xiaoling,
vice-governor of the People's Bank of China, told a Sino-US symposium on
building new financial system.
"US investors can enjoy better treatment than citizens in China, but in the
US Chinese investors sometimes cannot enjoy national-standard treatment," said
Guo at the symposium held in the coastal city over the weekend.
He pointed out that the different investment policies have resulted in a
mutual investment imbalance.
Statistics indicated that US investors have plunged about US$60 billion into
China, while China has little investment in the US.
"The unfavourable trade measures are not only harmful to Chinese companies
but also US investors in the long run as all economies closely interact with
each other, especially those of China and the US," Guo warned.
In response, US Ambassador to China Clark T. Randt said the Bush
administration has been open to foreign investment and emphasized that a sound
Sino-US relationship is in the interests of the US.
"The Bush administration welcomes FDIand we will gain mutual benefit from
it," said Randt.
But he said for "national security" reasons, some regulations had to be
enforced.
The three-day symposium is an annual event jointly organized by the China
Development Research Foundation and Harvard University.
Renminbi appreciation
Asked about trade disputes between the two countries, Guo said both sides
should consider them in a "comprehensive" way, and appreciation of China's
currency is not a promising way to solve the problem.
His words come at a time when China faces increasing pressure to increase the
value of the renminbi.
"As a matter of fact, China and the US are complementary in trade and
exchange rate adjustment can play some role but not a very significant one
because China's trade to a great extent has a re-export pattern," said Guo.
(China Daily 06/26/2006 page1)
