Interview: China-US investment positive, more central trade policy in US

The two-way investment between China and the US has a very positive prospect even though amid the global financial crisis that is originated from the US. On the trade issue, the US President-elect Obama will adopt a somewhat "central" line, that is, neither that restrictive nor pro-free trade.

In an exclusive interview with People's Daily Online on Dec. 17, Norman Mineta, former Secretary of Commerce under the Clinton Administration and Secretary of Transportation under the Bush Administration, gave his opinions about the prospect of China-US economic relations. Mr. Mineta is leading a US business delegation on a visit to China for a forum on the Chinese companies "going international" strategy sponsored by the Western Returned Scholars Association Entrepreneur Alliance.

Mr. Mineta stressed that it is important for nations to keep their own economies healthy on one hand and at the same time help each other to make sure "the whole system does not sink" on the other.

He does not think that the US investment in China would shrink sharply. China's four trillion yuan economic stimulus package means great opportunities for foreign companies with good products and innovative designs.

He believes that the US is still a "very innovative, entreprenant" country holding many technologies that China can adopt. And US companies think further improvements on their technologies by Chinese companies or companies from other others are "to everyone's advantage".

As a result of the Strategic Economic Dialogue which is a high level communication mechanism on a regular basis, China and the US have agreed to expand cooperation on energy and environment. Mr. Mineta believes that will bring positive outcome. The recent example is the 250 million USD contract of clean coal technology between China and the US.

When it comes to the Chinese investment in the US, Mr. Mineta thinks there are a lot of opportunities, particularly in the hi-tech or even the automobile industry. However, he noted that Chinese companies should not "overreach like the Japanese did in 1980s". He also highlighted the importance of transparency and observation of laws in business.

Mr. Mineta repeatedly stressed that difficulties faced by Chinese companies in their attempts of acquiring the US companies are not directed at China. All foreign companies are subject to the same restrictive policies in sensitive sectors.

There is a difference between a Democratic Congress which may have more protectionism and President-elect Obama, according to Mr. Mineta, saying that Mr.Obama would become "more to the center" on trade issues. Although Mr.Obama sounds more leftist in his campaign on trade issue, Mr. Mineta does not think Mr. Obama would be as that restrictive as many in the Democratic Party might be.

Neither would Mr. Obama be as that pro-free trade. Mr. Mineta believes that Mr. Obama would still pursue some kind of fair trade agreements even though many liberal Democratic do not like that. Those agreements will have more protection for the labor and environment.
One of Mr. Obama's big jobs, according to Mr. Mineta, is to "rebuild" the relationship with China and other countries. That means there should be more bilateral or multilateral give and take in the relations.

Many countries feel there has been "pretty much unilateral respect" in the relations with the US, said Mr. Mineta.