China is taking steps to resolve the problem of the trade deficit between China and the United States, and hopes the United States will lift the restrictions on its exports to China so as to expand bilateral trade, a Chinese official said in Beijing on Wednesday.

"We didn't deny there is the trade deficit between China and the United States, and we are making great efforts to resolve the problem by increasing import purchase orders from the United States," said He Yafei, Foreign Ministry director-general of the Department of North American and Oceanian Affairs.

He said the Chinese side also hopes the US side will take measures to loose its restrictions on exports to China. "If those export restrictions are removed, the trade between China and the United States will be greatly increased," He said.

He said with the rapid growth of the Chinese economy, China is facing increasing demands on electricity. As a result, the Chinese government is working on introducing nuclear techniques from foreign countries.

Upon the upcoming China visit of the US Vice President Dick Cheney, He said the Chinese side hopes China and the United States can make progress in import of nuclear techniques.

"Just like Chinese Premier Wen Jiabao said during his US visit at the end of last year, the Sino-US trade deficit should be resolved in a win-win way," said He. "Thus the US side should increase exports to China rather then cut its exports."

According to the director, the Sino-US trade has increased nearly 50 times since 1972 when the two countries established diplomatic ties. During the first two months of this year, US exports to China increased by 52.3 percent over the same period of last year.

In addition, He said the US unemployment problem should not be blamed on China. Analysis by economists from the United States and other foreign countries has shown that the trade deficit with China is not the cause of US job losses, the director added.

The Sino-US trade volume accounts for less than one percent of the US GDP (gross domestic product), which is too low to influence the US economy, said He.

On the Renminbi exchange rate, He said both China and the United States have discussed this issue at all levels.

He said for a long-term view, China will form its currency mechanism based on the market, but at the current stage, any change of China's currency system will influence the Asian finance and economy.

(Xinhua News Agency April 8, 2004)