DCM Xie Feng Attending 2008 China Business Grassroots Forum

In St. Louis and Cleveland

Minister Xie Feng visited St. Louis, Missouri and Cleveland, Ohio from October 1 to 3 at the invitation of the U.S Chamber of Commerce. The Deputy Chief of Mission delivered keynote speeches to more than 170 representatives from local governments and business communities of the two Midwestern states at the 2008 Business Grassroots Forums aimed at expanding business opportunities in China for U.S. companies.

The DCM briefed his audience on China’s three decades of reform and opening-up. He noted that China’s economy, with an increase of 10.8% in the first half of this year, remains strong and healthy. In particular, personal income and domestic demands continue to increase steadily, moving China toward a consumption-driven economy. This, he said, means tremendous business opportunities for foreign companies.

The Minister noted that China-U.S. relationship has made important progress in recent years, providing foreign companies with a favorable business environment. He said that China-U.S. business cooperation is mutually beneficial and a “win-win story”. The two sides should observe the three China-U.S. joint communiqués and the basic norms governing international relations to ensure smooth growth of their relationship.

Minister Xie said that China has been watching closely the financial turbulence in the United States, and has stayed in touch with the U.S. side. China hopes that the measures by the U.S. side will have positive effects, stabilize the U.S. and world financial market, and restore investors’ confidence. He added that the interests of Chinese investors in the United States should also be protected.

The DCM told his audience that “China takes seriously U.S. concerns over IPR, trade imbalance, and product safety”. The Chinese Government has taken, and will continue to take, effective measures to address these issues. He said that the right way to balance bilateral trade lies in expanding U.S. exports to China, rather than limiting Chinese exports to the United States. He called on the U.S. Government to ease its controls on export to China. He said that China attaches great importance to product safety, and takes seriously the recent baby formula contamination issue. In addition to punishing those responsible, China is strengthening institution building and exercising strict supervision and inspection over each of the key links of production. He pledged that China will promote social ethics, and businesses will never be allowed to seek profits at the cost of people’s health.

The DCM also briefed his audience on China’s recent success in Shenzhou VII manned space mission, and stated that China advocates the peaceful use of outer space. Shenzhou VII will advance not only China’s space technology, but also the peaceful use of outer space by mankind.

Minister Xie reviewed China’s relations with Missouri and Ohio, which he termed as “strong”. He pointed out that the China has become the second largest trading partner of Ohio, and the 4th largest export market of Missouri. He called on his audience to continue to support the growth of relations between China and their respective states.