China must play by the rules in its trade with other countries, US Secretary of State Condoleezza Rice said Monday, warning that its economic expansion was being watched closely. Rice, who spent two days in China as part of a week-long Asian tour, said that while Washington viewed China's booming economy as a positive, it was "something everyone is watching and that everybody is concerned about."
"As the Chinese economy is becoming such a big factor it really is critical that people know that China is acting within the recognised rules of the international economy, that there is an understanding in China of the responsibility that comes with that kind of rapid economic growth," she said.
Rice noted that discussions were underway with China about the need to protect intellectual property rights and revalue its currency, the yuan, repeating the US desire for "a flexible and market-rate floating currency".
According to US Department of Commerce data, the US trade deficit with China grew 30.9 percent in 2004 to 162 billion dollars, accounting for almost one-quarter of the entire US trade deficit.
China's trade surplus has been a particular concern among US politicians and policy makers, with American officials claiming the yuan is undervalued, giving Chinese exports an unfair pricing advantage.
Vice Premier Wu Yi, in meetings with Rice, said Sino-US economic and trade co-operation constituted "an important basis and a strong driving force for the steady growth of bilateral relations", Xinhua news agency said.
She said the two sides "should treasure the hard-won result of bilateral economic and trade co-operation and properly handle their disputes with a long-term perspective and in the principle of equality, reciprocity and development".