There should be more cooperation and less containment in Sino-U.S. relations, which suffered a «spring chill» at the beginning of 2010, said a spokesman for China's top political advisory body here Tuesday.
Zhao Qizheng, spokesman for the third session of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), made the remarks at a press conference at the Great Hall of the People in central Beijing.
Zhao said since the two countries established diplomatic ties in 1979, the China-U.S. relations had developed rapidly with the volume of bilateral trade expanding more than 100 times as well as a lot of cultural, political and economic exchanges, which benefited both sides.
U.S. President Barack Obama seemed to have some new thinking on the relations, but two events, which happened during the first 20 days of 2010, had chilled the China-U.S. ties, said Zhao, referring to the Obama administration's arms sales plan to Taiwan and Obama's meeting with the Dalai Lama despite strong opposition from China.
«These two events damaged China's core interests,» Zhao told hundreds of domestic and foreign journalists. «Changes in the China-U.S. relations are like changes in weather, from sunny days to cloudy days, and this has aroused Chinese people's concerns.»
He said Obama's meeting with the Dalai Lama «seriously disturbed» the Sino-U.S. relations, while the arms sales to Taiwan «seriously violated» three joint communiques between China and the United States and harmed China's national security and cross-Strait peace and stability.
«The responsibility of the setback of the Sino-U.S. relations lies with the U.S. side,» he said. «This is like playing tennis, the United States served the ball and what China did was simply strike the ball back.»
«For the sake of the interests of both countries, there should be more cooperation between China and the United States and less 'containment' from the United States,» Zhao said.
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«The Americans need to understand that the China-U.S. relation is like a car that have two drivers instead of one. The Chinese and Americans both have wheels and brakes, so they have to discuss with each other to drive the car forward on the right track,» he said.
«Otherwise, the car will only spin around and stay where it is,» he added.
The annual plenary session of the CPPCC National Committee will open Wednesday and more than 2,000 top political advisors are expected to make suggestions and proposals on state affairs.
Major Chinese steel mills have not reached an interim price deal with BHP Billiton Ltd as reported by foreign media earlier this month, a sign that Chinese steelmakers will consolidate their efforts in upcoming benchmark iron ore price negotiations.
One source representing a major State-owned steel mill said no price deal has been reached between major Chinese steelmakers and the world's three biggest iron ore suppliers, Rio Tinto Group, BHP Billiton Ltd and Vale SA.
«We agreed to consolidate our efforts in this year's price negotiations during an internal meeting of the China Iron and Steel Association in early February,» said the source. «No one would be so foolish as to arrive at any interim deal with talks still ongoing.»
In mid-February, Dow Jones cited Hu Kai, an analyst at research house Umetal, as saying BHP Billion Ltd had reached an interim price deal with several Chinese steel mills for a 40 percent increase over 2009-10 iron ore benchmark prices. However, the analyst claimed to have been misunderstood.
«I only said some Chinese steel mills bought iron ore this January at a spot price 40 percent higher than last year's benchmark price. There was no interim price deal,» said Hu.
Benchmark prices are long term or bulk prices discounted from spot prices.
Baosteel Group Corp will negotiate benchmark prices on behalf of Chinese steelmakers this year with the three global mining giants.
Though Chinese steel companies are insisting on a consolidated effort to bargain with the three global firms, iron ore prices may still rise, driven by China's huge demand, said industry analysts.
«Overcapacity in China's steel industry has driven up the demand, but new mines are not productive enough to feed the huge demand,» said Hu. «Supply is less than demand and this will not change over the next two to three years.»
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Customs figures show China imported 630 million tons of iron ore in 2009, up 41.6 percent from 2008, mainly from Australia and Brazil.
Boosted by government stimulus, infrastructure expansion and vehicle manufacturing, China's demand for steel last year was massive.
A huge domestic market as China's unique advantages
«This is to enhance the quality and level of foreign investment in China, said:» The Minister of Commerce Chen Deming in 2010, the organization of work. China, in 2009 the total foreign capital actually used 90.03 billion U.S. dollars, ranking second in the world.
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According to the Global Monitoring Report issued by investment trends in recent years by the United Nations Conference (UNCTAD), January 19, China's position and role of global foreign investment continued to grow in 2009. From 2005 to 2006, China's participation in the global foreign direct investment in the fourth main destination countries, up to third place in 2008, reaching the second after the United States in 2009,
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According to a survey by the Ministry of Commerce of China 80 percent of German companies German Chamber of Commerce, said the findings of the huge domestic market is behind the investment in China's most important reason.
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2009 China Business Report published by the U.S. Chamber of Commerce held in Shanghai in 2009 showed that U.S. companies as their main destination countries of Chinese investment in the end. 64 companies accounted for plans to further invest in China. At the same time, U.S. companies pay increasing attention to China's growing domestic market and expand in the second and third line of the city's business.
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