DATE=11/5/03

TYPE=CORRESPONDENT REPORT

TITLE=POWELL / CHINA TRADE (S)

NUMBER=2-309483

BYLINE=DAVID GOLLUST

DATELINE=STATE DEPARTMENT

CONTENT=

VOICED AT:

INTRO: In a China policy address in Texas, Secretary of State Colin Powell expressed concern about the continuing imbalance favoring China in bilateral trade. V-O-A's David Gollust reports from the State Department.

TEXT: The Secretary's speech at Texas A-and-M University was dominated by praise for the political cooperation that has developed with China during the Bush administration on such issues as North Korea, anti-terrorism efforts and Iraq. He said bilateral trade has also expanded, to approach 200-billion dollars a year in two-way volume. But he said the chronic imbalance in that trade, favoring China, worries the United States:

/// POWELL ACT TWO ///

China is our fourth-largest trading partner. It is our sixth largest, and fastest-growing export market. That said, we are concerned, and we are still burdened, by the disparity in the trade balance, by market-access problems that American manufacturers are having, and by a non-market exchange rate.

/// END ACT ///

Mr. Powell said senior administration officials, from President Bush on down, have repeatedly made the point to Chinese officials in recent weeks that the two countries commercial engagement must benefit both sides. (SIGNED)

NEB/DAG/RH/RAE