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Economic and trade relations between China and the United States constitute an important part of the bilateral relationship, and the development of healthy and stable economic and trade ties between the two countries are conducive to the fundamental interests of the two peoples, Chinese Vice Premier Wu Yi said in Los Angeles Thursday.

Wu made the remarks at a contract-signing ceremony and trade and investment fair between Chinese and American entrepreneurs, which was also attended by Los Angeles Mayor Antonio Villaraigosa, and Michael Antonovich, chairman of the Los Angeles County Board of Supervisors.

Thanks to joint efforts by both sides, China-US economic and trade relations have maintained a momentum of rapid development, and bilateral cooperation in economy and trade has been expanding both in depth and breadth, she said.

In 2005, Wu said, bilateral trade between China and the United States rose to US$211.63 billion, an increase of more than 86 times from 1979, when the two countries established diplomatic relations.

China has become the fourth largest exporting market and third largest trading partner for the United States, which, in return, has become China's second largest trading partner, with bilateral trade rising 27.4 percent annually between 2001 and 2005.

To date, US companies have invested in nearly 50,000 projects in China with an accumulated actual investment of over US$50 billion , and in 2004, US companies recorded a sales volume of more than 75 billion dollars.

Economic and trade cooperation is mutually beneficial, and has created million of job opportunities in the United States. The continued, rapid growth in China-US trade and investment fully demonstrates the solid foundation and huge potential for further developing the bilateral economic and trade relationship, said the Chinese vice premier.

Wu said it is natural that some friction would occur in bilateral trade, considering the rapid development of China-US economic and trade relations. She called the two sides to solve their economic and trade disputes in the spirit of objectivity, equality and consultation, and to avoid politicizing economic and trade issues.

China is the world's largest developing country, and the United States, the largest developed country. Complementarity in economy and reciprocity in economic and trade cooperation are the foundation for lasting development of China-US economic and trade relations, Wu pointed out.

The Chinese vice premier added that an equal, mutually- beneficial economic and trade relationship is of great significance in the overall healthy development of China-US relations.

Chinese and American entrepreneurs signed 27 contracts at the ceremony on products such as software and automobiles, amounting to 4.44 billion dollars.

(Xinhua News Agency April 7, 2006)