U.S. and Hong Kong (1998)

09 April 1998

COMMERCE'S DAVID AARON TO LEAD TRADE MISSION TO CHINA

Following is the official text of the Commerce Department announcement concerning the trip:

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U.S. DEPARTMENT OF COMMERCE NEWS

FOR IMMEDIATE RELEASE

Commerce Under Secretary David Aaron to Lead Trade Mission to China

Mission to Advance Vital U.S. Commercial Policy Objectives and Promote Expanded Trade

Washington (April 9, 1998) -- Commerce Under Secretary for International Trade David L. Aaron today announced that he will lead his first business development mission to Beijing, Shanghai, and Hong Kong, April 13 - 18, aimed at strengthening commercial ties with one of the world's fastest growing regions. During the mission, Under Secretary Aaron will work in partnership with the U.S. business delegation to advance vital U.S. commercial policy objectives and promote expanded trade opportunities in China and Hong Kong. Under Secretary Aaron's mission follows up on Commerce Secretary William Daley's trade mission to China last fall and also will serve to lay some of the groundwork for President Clinton's upcoming visit in June.

"The evolution of China as a global power in the next century will have an enormous impact on the security and prosperity of the American people. That is why engaging the Chinese and advancing our commercial relations with China and Hong Kong is a top priority for President Clinton and this Administration," Aaron said.

"A major goal of this visit is to have discussions with my Chinese counterparts about an improved climate for American businesses in China and the need for significant improvement in our mounting trade deficit and in market opening measures by the Chinese government," Aaron said. "The Asian financial crisis and its potential impact on China's continued economic vitality in the region make these market opening measures and other reforms more necessary than ever."

The mission is part of the Commerce Department's ongoing effort to help U.S. firms maximize export opportunities that grow jobs and economic opportunity in the U.S. The business delegation includes 18 business leaders, many from small and medium-sized firms, representing a wide spectrum of U.S. industry with the expertise needed to help China modernize its own industry and infrastructure. The sectors represented on the delegation include engineering, design and construction, information technologies, machine tools, insurance, and project finance. (See attached delegation list.) Mission participants' interests range from assessing opportunities in the Chinese market to expanding existing business relationships.

China's plans for modernization and expansion of its infrastructure, while recently revised downward, are still ambitious and should create enormous opportunities for nurturing trade and expanded cooperation between our two countries. Insurance is one of the fastest-growing sectors of the Chinese economy and a priority market for U.S. insurance firms. Between 1993 and 1997, China's insurance market grew at an average rate of 33 percent annually, reaching $12 billion in premiums last year and providing a key component for infrastructure and investment in that country.

In Beijing, Under Secretary Aaron will be meeting with many of China's new economic leaders and pressing them to make progress on improving our expanding trade deficit, gaining greater market access consistent with our goals in the WTO, and reducing tariff barriers. He will also participate in a sub-ministerial review of U.S. - China Joint Commission on Commerce and Trade (JCCT) issues and advocate on behalf of U.S. businesses.

In Hong Kong, Under Secretary Aaron will meet with government officials to underscore the importance of our substantial economic and commercial interests and emphasize our continued support for Hong Kong's autonomy and open society.

In 1997, U.S.-China trade totaled $75.3 billion, making that nation our 4th largest trading partner, and U.S. trade with Hong Kong totaled $25.3 billion.

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