BEIJING, April 3 -- China's rapid growth into the world's manufacturing base poses no threat to the United States which must refocus on higher-end products, U.S. Commerce Secretary Carlos Gutierrez said.

    "At a time when China is growing as a manufacturing exporter of low-priced goods, our unemployment is declining. And our economy is growing and the average take-home pay per American is increasing," Gutierrez said at a breakfast hosted by the American Chamber of Commerce in Japan on Friday.

    "China has built its economy on the basis of manufacturing of commodity-type products.

    "What we have seen in the United States is that our new jobs that are being created are in the area of higher value manufacturing, differentiation of products, higher technology, and in many cases new services," he said.

    He said the United States needed to keep building its economy looking at value-added products, high technology and better paying jobs, and for that it needed to better train its workers.

    The remarks by Gutierrez, who visited China before going to Japan, came despite rising trade friction between Beijing and Washington.

    U.S. lawmakers have threatened to slap a 27.5 percent tariff on China's U.S.-bound exports unless Beijing revalues its currency, although momentum for a vote has declined after two key senators visited Beijing.

    The United States says the yuan is undervalued, giving an unfair advantage to China and fueling a massive U.S. trade deficit with China that hit a record US$202 billion last year.

    In the latest criticism of Beijing, the United States, joined by the European Union, initiated a World Trade Organization complaint Thursday alleging that China is unfairly blocking foreign-made auto parts.

    (Source: Shenzhen Daily/Agencies)