BEIJING, Feb. 20 -- The United States would risk a dearth of Christmas gifts and trees if it threatened China's cheap, abundant exports, a Chinese spokesman said, rejecting a U.S. report critical of China's trade surplus.

    The United States benefits as much as China from their rising two-way trade, the spokesman for China's Foreign Ministry, Qin Gang, said.

    "The constantly expanding economic and trade cooperation between China and the United States suits the fundamental interests of the two countries and benefits both their people," he said.

    Qin was responding to a report from the United States Trade Representative, Rob Portman, that vowed more pressure on China over long-standing U.S. trade complaints.

    "Overall, our U.S.-China trade relationship today lacks equity, durability and balance," Portman told a news conference Tuesday when he released a review of trade relations with China.

    That gap hit a record US$201.6 billion last year, according to the Bush administration, and members of the U.S. Congress have called for the Bush administration to staunch the flow of Chinese goods.

    China put its surplus with the United States last year at US$114.2 billion, largely because it does not count exports shipped through Hong Kong as originating in China, which the Bush administration does.

    Qin said friction was normal as the two countries' economic ties deepened. U.S. threats to restrict Chinese goods, or impose sanctions for dumping and intellectual property complaints, would hurt both sides, he added.

    Such moves would deprive U.S. consumers of the cheap Chinese goods, including at Christmas when they are ubiquitous, Qin said.

    "According to the documents I've read, the vast majority of Christmas gifts and trees are made by China," he said.

    "The United States doesn't make these products anymore, but through trade, China is able to provide U.S. consumers with fine, affordable products. Isn't that a plus for those consumers¹Ò"

    Qin's comments followed a similar rejection of the U.S. complaints by the Ministry of Commerce.

    Vice Commerce Minister Yi Xiaozhun told a China-U.S. business forum Tuesday it was multinationals, not Chinese firms, who accounted for most of China's trade surplus.

    Yi said that 83 percent of China's US$101.9 billion trade surplus last year came from foreign companies in China. Yi was using Chinese trade statistics, which differ from U.S. ones.

    Charles Martin, president of the American Chamber of Commerce-China, said at a news briefing Thursday that he was concerned that the trade tensions could backfire for U.S. firms, just when sectors like retailing, distribution and financial services are beginning to open.

    "That's the real tragedy of escalating trade tensions between the two countries, because you don't want to cut off your own opportunities just as you're getting started," he said.

    Martin said he thought that U.S. federal and state governments, as well as trade associations, should put considerably more resources into helping their country's small and medium sized firms export more goods and services to China.

    "Unless this is forthcoming, I don't think we'll be very successful," Martin said.

    "The Europeans are doing a very, very good job at this," he said, "And although we've improved that a lot in recent years, we aren't doing enough."

(Source: Shenzhen Daily/Agencies)