A spokesman for the Chinese Ministry of Commerce said Thursday that China welcomes the decision of the United States government to veto a trade investigation application targeting the Chinese currency and labor rights.

Chong Quan, the spokesman, said the decision is of "positive significance" to the normal development of Sino-US trade.

The US government rejected on Wednesday the investigation of China's alleged abuse of labor rights raised by the American Federation of Labor-Congress of Industrial Organizations and the probe into the alleged manipulation of the Renminbi, the Chinese currency, by the National Association of Manufacturers.

Such investigations were expected to trigger trade retaliation measures such as increasing tariffs and limiting imports.

"China welcomes and appreciates the decision by President Bush and the US government," Chong said. "China welcomes all measures from the US side to benefit the smooth development of Sino-US trade and economic cooperation."

"The constant and stable development of Sino-US trade and economic cooperation is of significance to the growth of the two economies and benefits the two peoples," Chong said.

Sino-US trade exceeded 126 billion US dollars in 2003 and 35 billion US dollars in the first quarter of this year, recording year-on-year growth of 30 percent and 37.2 percent respectively.

China mainly sells machinery and electronic products and cheap and quality consumer goods such as garments, shoes, toys and televisions and buys machinery and electronic products, chemicals and agricultural products from the United States.

Chinese and US leaders have frequently exchanged views on economic cooperation and bilateral ties and reached broad consensus, Chong said.

At the 15th session of the China-US Joint Commission on Commerce and Trade held in Washington earlier this month, which was co-chaired by Chinese Vice-Premier Wu Yi and senior US officials, the two sides discussed many trade issues and saw many achievements, Chong said.

China is willing to enhance cooperation, communication and consultation, based on the principles of development, equality and mutual benefit, with the US side to properly handle trade problems to further Sino-US economic ties, the spokesman noted.

Source: Xinhua