Rebuffing US charge on accumulating trade surplus by under valuing Yuan, China today said

RELATED ARTICLES Tapi pipeline perfect example of energy diversification: US India to move WTO this week against US visa fee hike Dr Reddy's launches lansoprazole capsules in US market Nasscom concerned over US visa probe on Indian firms Economics will dominate China, India ties: Expert

America made huge profits from China's robust purchasing power and comparatively low labour cost during the financial crisis.

"It has been repeatedly said that China has enjoyed much benefit from the US in funding, technology and management, but what cannot be forgotten is also that the US has benefited a lot from China, in many ways," China, Department of American and Oceanian Affairs Director, He Ning said.

China became the third largest importer of the US in 2008, up from being its ninth largest in 2001, he said.

"China is the single largest overseas importer of US soybean and cotton, and is also an important importer of American automobiles and airplanes," He Ning said, adding that "the cheap but quality products from China help US inflation remain low and consumers to save quite a lot".

The Chinese Commerce Ministry had earlier refuted charges labelling China as a manipulator of its currency and threatening to impose duties on Chinese imports if the country does not appreciate its yuan.

China would send Deputy Commerce Minister Zhong Shan for a three-day US visit from March 24 for discussions focused on the "Sino-US trade balance and trade frictions".

"All trade-related issues will be discussed. The exchange rate is not under the jurisdiction of the ministry, but it is a heated issue and is closely related to trade," Zhong said about his forthcoming visit to Washington.

China has already agreed to allow imports of US pork, lifting an almost year-long ban on the meat.

Zhong said the profit margin for most exporters is less than two per cent and currency revaluation will threaten the survival of many.

"Many small and medium-sized companies may go out of business and many people will lose their jobs if the yuan appreciates," the China Daily quoted Zhang Yujing, president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products as saying.

"It's wrong to merely conclude that China-US trade is imbalanced. The US should be responsible," Zhong said.

"The US should be more positive in handling the issue (of trade imbalance) and consider exporting more high-tech products to China," he said.