(Yicai Global) May 25 -- The US trade deficit with China has been gradually decreased over the past decade, and China has made substantial efforts to cut trade surplus by expanding domestic demand, China's ministry of commerce (Mofcom) said in its "Research Report on China-US Economic and Trade Relations" today.
The US trade deficit in goods with China is exaggerated, the report stressed. The trade surplus reported by the US Administration was USD366 billion in 2016, while the real figure should have been USD254 billion, the report said on official website of MOFCOM.
The US trade deficit with China has gradually decreased thanks to China's comprehensive efforts, the report said. In 2016, China-US trade surplus in goods accounted for 46 percent of China's total trade surplus in the same category, compared to 81% in 2006, down from 55 percent to 48 percent in China-US trade volume.
"The US trade deficit with China is determined by the economic structure, industrial competitiveness and international industrial division of labor, rather than human factors,", the report underlined, adding that the US also benefits from the China surplus in the global value chain.
The US has been concerned about the yuan exchange rate, and blamed the Chinese government for controlling the yuan exchange rate. This was not objective nor fair, the report said.
China had been working to improve the market-based yuan exchange rate regime since the reform of the yuan exchange rate, and the yuan has significantly appreciated. In July 2005, the exchange rate was set at about 8.28 yuan per US dollar. It reached 6.09 yuan in December 2016, representing a 35.8 percent rise.
The China's central bank's foreign exchange open market operations did not fall into the scope of exchange rate manipulation, the report reminded. It quoted an assessment made by the International Monetary Fund (IMF), which noted that yuan exchange rate generally aligned with China's economic fundamentals, and achieved a basic balance in 2016.
In the end, the report mentioned the major efforts made by China to redress China-US economic and trade relations. "China has frequently dispatched trade and investment delegations to participate in trade and investment promotion activities in the US," the report added.
Moreover, China has been promoting cooperation between its provinces and the US states, and has been expanding imports from the US. Some 25 Chinese provinces have established joint working groups on trade and investment cooperation with seven US states, the report cited.