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"South Carolina has a good business environment and has become one of the hotspots for Chinese investment in the United States," Vice-Premier Wu Yi said on Sunday.

Economic and trade contacts and cooperation between the southeastern US state and China have produced good results in recent years, with South Carolina's trade with China reaching US$3.26 billion in 2005, Wu said, speaking at a meeting with US Senators Lindsey Graham and Jim DeMint, both South Caroliners.

The vice-premier said she was impressed with the hospitality of the South Carolina people and the desire of the state's businesses to work with China.

China's Haier Group established a home appliances production base in South Carolina in 1999, its first in North America, creating job opportunities and contributing to local economic development, Wu said.

To enhance Chinese companies' understanding of South Carolina's investment environment, Wu announced that the China Chamber of Commerce in the US would jointly host a "China-South Carolina Economic, Trade and Investment Forum" with the South Carolina government.

Further expansion of economic and trade relations between China and the US will help promote exchange and cooperation in culture, science and technology and tourism as well, the vice-premier said.

She said that there would undoubtedly be some friction as China-US economic and trade relations continue to develop, but this is only to be expected. She added that the two sides should solve any issues with sincerity and through equal consultation.

Exerting pressure on the other side would only generate negative results, she said.

The Chinese vice-premier added that she would co-chair the 17th meeting of the Sino-US Joint Commission on Commerce and Trade in Washington with US Commerce Secretary Carlos Gutierrez and Trade Representative Rob Portman.

During the meeting, they will exchange views on major issues surrounding economic and trade relations in a bid to enhance mutual trust on issues affecting bilateral trade, and strive for consensus. This should help to create favorable conditions for further development of the China-US economic and trade relationship.

Graham and DeMint said Wu's visit to the US was a boost to exchange and understanding between the two countries, and South Carolina had a strong interest in strengthening economic and trade cooperation with China.

They also said South Carolina hoped more Chinese companies would invest in the state, adding that an increase in Sino-US business activity would make the relationship between the two sides even closer.

(China Daily April 11, 2006)