US Wants EU and China to Hold International Trade Talks

A top US official said that the United States wants the European Union to adopt its strategic approach in resolving economic and international trade issues with China. He added that such move could unify the efforts of wealthy countries to seek more reforms in China's trade practices. A year ago, US Treasury Secretary Henry Paulson headed a high-level delegation to China in order to launch the first round of the Strategic Economic Dialogue between the US and China. The international trade talks have been aimed at bridging gaps and improving the economic relations between the two countries.

While the US is seeking to resolve international trade issues with China, the European bloc is also keen to deepen its economic ties with the Asian nation. With its rapidly expanding economy, China poses as a potential partner to European countries in terms of business and trade. Needless to say, the efforts of the EU to strengthen its relations with China are affected sometimes by conflicts of interests within the European bloc. Until now, EU states are in dispute on how to deal with low-cost exporters such as China.

It must be noted that China's cheaper export products continue to attract more buyers in Europe. While the cheap cost of Chinese products largely benefits European consumers, it also affects many businesses across Europe. But last week, US Treasury Deputy Secretary Robert Kimmitt told journalists that the EU might want to adopt the same strategy used by the US in dealing with international trade issues with China. The US official also said that China and Japan were moving towards a strategy similar to that of the US-China economic dialogue.

One of the issues affecting the international trade ties between the US and China is the low value of the latter's currency. It must be noted that the US government has long called for China to revaluate its yuan. The US complained that the low value of the Chinese currency gave the country an unfair advantage over other nations in international trade. The low value of yuan has also been regarded as one of the key factors behind the huge trade deficit of the US.

Like the US, the EU has also voiced its concerns regarding the Chinese yuan. The EU has also said that it would resolve international trade issues with China through negotiations rather than litigation or confrontation. The US-China Strategic Economic Dialogue is due to take place later this month. The talks have been aimed at cementing the international trade relations between the US and China.