Wen urges cooperation with U.S.

BEIJING, March 15 (UPI) -- China is prepared to buy more from the United States but Washington should ease its export restrictions, Chinese Premier Wen Jiabao said.

Addressing a news conference in Beijing at the end of the annual session of Chinese parliament, Wen said cooperation, not confrontation, is the way to address the trade imbalances between the two countries.

The United States should open its exports to China and ease related restrictions while promoting two-way investment, Wen said, the official Xinhua news agency reported.

Trade issues between the two countries relate largely to the undervalued yuan and charges of Chinese government export subsidies. An undervalued yuan makes Chinese exports less expensive, allowing the country to run big trade surpluses.

"China is prepared to buy more from the United States," Wen said. "I believe that cooperation between China and the U.S. is always better than confrontation."

Wen said Chinese investment in U.S. infrastructure construction would help boost U.S. employment.

He urged expanding cooperation in high technology areas, new energy, new materials, energy conservation and aviation.

On trade, Wen said China's international balance of payments is "approaching basic equilibrium" as the current account surplus of China in 2011 was 2.8 percent of its GDP, or below the 3 percent internationally accepted level.

He said the United States replaced the EU as China's largest export market last month, Xinhua reported.