Among the censures of US-China unbalanced trade, a US authoritative organization issued the latest research report, which gives a contrary conclusion. After China's entry into WTO, US-China trade and investment pushes the United States' economic growth by 0.7 per cent. This translates into an increase of up to 1,000 US dollars in real disposable income per US household per year.

The US-China Business Council (USCBC) released the report on Wendesday, the latest research report authored by Oxford Economics and The Signal Group, two research and consultant institutions, assessing the impact on the US Economy of Trade and Investment with China.

The report finds that despite that US-China unbalanced trade draws attention, from a long-term point of view, the United States will achieve pragmatic and sustainable benefits from its trade and investment with China. The increase in US trade with China will boost US GDP by up to 0.7 per cent and will reduce prices by up to 0.8 per cent by 2010. Together, this translates into an increase of up to 1,000 US dollars in real disposable income per US household per year by 2010.

This report finds that each American worker's output will be boost up by 0.7 per cent due to competition with China's products and cost reduction. The recent expansion of US-China trade and investment is contributing to a shift in the structure of US employment away from manufacturing and toward services. US manufacturing employment will fall by 500,000, but employment in services -- in industries including distribution and financial services -- will increase 500,000 correspondingly. Despite that the manufacturing workers pay the fiddlers, generally speaking, investment in and trade with China will boost sustainable, additional and positive impact on the productivity, efficiency, employment and real wages of US economy.

The report belives that US trade unbalance itsself is not the reason for the deteriorated trade conditions in recent years. For all that the dramatic increase of China trade with the United States, China's share of the overall US current account deficit has remained fairly constant at about 20 per cent for more than a decade.

If China had not cemented its commitment to the World Trade Organization (WTO), China's export to the United States would have been 90 billion US dollars lower than the real figures in 2005, while the import would be 10 billion US dollars lower.

Apparently, US unfavorable trade balance with China increased by 80 billion US dollars due to China's entry into the WTO, but actually, the increase of China's exports to the United States were offset by declining shares of other east Asian nations' exports to the United States, which shows the changes in the transfer of the east Asian and transnational enterprises.

The report emphasizes China has become one of the major engines for the global economic growth due to its vigorous demand. And China made greater contributions than any other countries to the global economic growth from 2000 through 2004. China's demand growth stimulates its main trade partners' exports to China, including the United States. China is the fastest-growing market for US exports.

By People's Daily Online