Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, McClatchy-Tribune
“25 Years of Talks, 25 Years of Progress”

In 1983, a group of Chinese and American officials met in Beijing to work through issues related to a small, but growing, bilateral trading relationship. At that time, goods trade between our nations totaled $4.4 billion. Twenty-five years later our two-way trade reached $387 billion, and this year it is on track to surpass $415 billion.

The U.S.-China Joint Commission on Commerce and Trade (JCCT), which grew out of that 1983 meeting, has become a vital mechanism of engagement between our two economies. This week in Southern California, leaders of the two countries will again come together to advance what has since become one of the world's most important economic relationships.

Wang Qishan, China's new vice premier, and a number of senior Chinese officials will meet with the U.S. delegation at the Richard Nixon Library & Birthplace Foundation in Yorba Linda, Calif. The library is a fitting venue, given President Nixon's historic visit to the People's Republic of China in 1972, paving the way for the normalization of relations between our two countries.

Progress through the JCCT
Together, the United States and China created one-quarter of the world's economic growth last year. Bilateral engagement through dialogues such as the JCCT and the Strategic Economic Dialogue has been a vital component to this growth. Through the dialogue, we have been able to tackle specific issues head on and deliver results for our workers and businesses. Combating counterfeit pharmaceuticals, protecting intellectual property, creating further access for American agricultural products in China and removing some of the restrictions on Chinese tourism to the United States are just a few of the recent outcomes.

While each of these steps toward a more fair and open economic relationship is important, the dialogue serves the broader purpose of strengthening this critically important relationship, and enhancing understanding between our people and our governments. This allows us to resolve problems, create solutions and to be candid about the challenges we face.

Progress through Openness
The China of 25 years ago is far different from the China of today. The Beijing Olympics were a testament to the growing prominence of China on the world stage and the tremendous economic progress of the world's most populous country. Clearly, China has benefited from its engagement with the global economy.

The United States is also far different. In 1983, our exports totaled $266 million; last year, they exceeded $1.6 trillion. In 1983, our unemployment rate was 9.6 percent; today, while higher than we would like, it is 6.1 percent. Real disposable income per capita is 60 percent higher than it was in 1983. And last year our exports of soybeans alone to China nearly equaled our entire bilateral trading relationship in 1983. Clearly, the United States has benefited from increased international flows of trade and capital. In order to continue to benefit, we must remain committed to critical economic relationships such as our relationship with China.

We know there is much work to be done in our bilateral relationship with China and full engagement is the best option. America's leadership in the world economy is stronger when we are open and engaged. The JCCT and other bilateral measures are an important element in ensuring that we can act quickly, addressing challenges as they arise. Where trade is unfair we work to right it. Where access is blocked we work to open it. Where regulations are excessive we work to reduce them. We must remain at the table, negotiating, discussing and dealing with all of our trading partners, especially China. Importantly, we must continue to open up more markets around the globe, passing free trade agreements (FTAs) with key trading partners to increase access to overseas markets for our companies.

While our economy is facing challenges, we must not retreat into economic isolationism, as some would suggest. Record exports continue to drive America's economic growth, equaling 12 percent of our gross domestic product last year. We should do everything possible to help our businesses export even more.

This week we will discuss important issues such as protection of intellectual property, transparency and market access. We will continue to push for a level playing field in China for America's workers, farmers and businesses.

The past 25 years have brought about remarkable change in the world's economy, much of which has occurred because of the leadership of the United States. Now, at this critical time for our economy and for our country, we must forge ahead. At this week's meetings with the Chinese, with the image of President Nixon's foray into China as the backdrop, we will look ahead to the next 25 years, working toward fairness and equity in our bilateral relationship.