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'China's industrial rise no threat to US'

(AFP)
Updated: 2006-04-01 07:13

China's rapid growth into the world's manufacturing base poses no threat to the United States which must refocus on higher-end products, US Commerce Secretary Carlos Gutierrez said.

China's rapid growth into the world's manufacturing base poses no threat to the United States which must refocus on higher-end products, said US Commerce Secretary Carlos Gutierrez, seen here in Tokyo. [AFP]

"At a time when China is growing as a manufacturing exporter of low-priced goods, our unemployment is declining. And our economy is growing and the average take-home pay per American is increasing," Gutierrez said at a breakfast hosted by the American Chamber of Commerce in Japan.

"China has built its economy on the basis of manufacturing of commodity-type products.

"What we have seen in the US is that our new jobs that are being created are in the area of higher value manufacturing, differentiation of products, higher technology, and in many cases new services," he said.

He said the United States needed to keep building its economy looking at value-added products, high technology and better paying jobs, and for that needed to better train its workers.

The remarks by Gutierrez, who visited China before coming to Japan, came despite rising trade friction between Beijing and Washington.

US lawmakers have threatened to slap a 27.5 percent tariff on China's US-bound exports unless Beijing revalues its currency, the yuan, although momentum for a vote has declined after two key senators visited Beijing.

The United States says the yuan is undervalued, giving an unfair advantage to China and fuelling a massive bilateral trade deficit.

In the latest criticism of Beijing, the United States, joined by the European Union, initiated a World Trade Organization complaint Thursday alleging that China is unfairly blocking foreign-made auto parts.