Wen Urges Co-op to Address Trade Imbalance with US

Cooperation is the way to address trade imbalance between China and the United States and the difficulties and frictions arising from it, Chinese Premier Wen Jiabao said Wednesday.

The United States should open its exports to China and ease related restrictions while promoting two-way investment, Wen said at a press conference right after the parliament's annual session.

"China is prepared to buy more from the United States," said Wen.

"I believe that cooperation between China and the US is always better than confrontation. As long as we continue to move in this right direction, the business ties between China and the US will enjoy sustained and sound growth," he added.

The two countries should create favorable conditions for mutual investment and enhance cooperation in infrastructure construction. China's investment in US infrastructure construction would be a win-win solution to helping boost employment of US workers, Wen said.

Wen also proposed expanding cooperation in high-tech fields, including new energy, new materials, energy conservation and aviation.

Wen pointed out that China's international balance of payments, particularly in trade and goods, is "approaching basic equilibrium," citing figures to say that the current account surplus of China in 2011 only accounted for 2.8 percent of its GDP, below the 3 percent level that is internationally recognized as appropriate.

China recorded a trade deficit of US$31.48 billion in February. The country's annual trade surplus in 2011 narrowed 14.5 percent year-on-year to US$155.14 billion in 2011.

In February, the United States, the nation's second-largest trade partner, replaced the EU as China's largest export market, as monthly sales to the US outnumbered that to the EU.