Against the backdrop of growing economic globalization, trade liberalization has attracted increasing attention. To put economic globalization and trade liberalization in perspective is of overreaching importance to the healthy development of the global economy. If the process of economic globalization and trade liberalization moves along rationally, it may not only allocate world resources more effectively and fairly, as well as expand the productive forces of all countries, but also promote the establishment of a global multilateral trading system and a fair new world economic order to the benefit of all countries.

    We hold that equality and mutual benefit are the cardinal principles of international trade. It is normal that countries seek to protect their own interests, which lead to trade frictions and disputes. The key lies in how to cope with these issues properly. We have always advocated that parties involved should adhere to the principle of mutual respect and settle bilateral or multilateral trade disputes reasonably through friendly discussions.

    As for China-U.S. trade, mutually beneficial and win-win trade and economic ties have delivered tangible economic benefits to both countries. Now, with more than 40,000 U.S.-invested enterprises, the paid-in value of total U.S. investment in China now stands at $43 billion. Of the top 500 U.S. companies, more than 400 are in China, and most are making profits. The McDonald's and KFC chain stores are found in almost every Chinese city, large or small. Products bearing such famous Americans brands as Microsoft, Intel, Motorola, P&G, Kodak and GM sell quickly on the Chinese market. Wal-Mart and other U.S. retailing firms are also successful in China. At the same time, many Chinese merchandise has become favored choices of U.S. consumers. The number of Chinese-invested enterprises in the United States has surpassed 700.

    As for the differences and frictions over trade, such as the U.S. trade deficit with China, the RMB exchange rate, intellectual property rights protection, we need to take a strategic perspective. Some of the differences derive from a lack of mutual understanding. Therefore, we are sure to narrow the differences and strengthen our cooperation through dialogue and consultation.

    It is China's sincere wish and also in the interest of the United States to expand bilateral trade and economic co-operation. Both governments are obliged to provide a sound and stable climate for long-term development of bilateral trade and economic co-operation. It is their duty to substantially improve bilateral trade ties and lay a solid foundation for developing and balancing trade between the two countries. We welcome the business communities from the United States to play an active role in fair competition on the Chinese market. We hope the US government will take forcible measures to fuel stronger growth in two-way trade and economic co-operation.