Both sides have numerous options in promoting bilateral economic and trade ties.

On the part of the US, easing control on the export of high-tech products to China is a feasible move. Since the publication of the notorious Cox Report in 1999, the US has been restricting high-tech exports to China. This has led to the decline of US market share in China and, in turn, became a major factor contributing to the US trade deficit.

The restrictions have aroused resentment from US businesses which are well aware that China can turn to other countries such as EU members and Japan for high-tech wares. In the end, it is the US that pays for the restrictions.

But the situation is improving. Westinghouse Electric Co is set to introduce third-generation nuclear power technologies in China. This type of cooperation helps reduce the US trade deficit with China.

1

2

(For more biz stories, please visit Industry Updates)