China tells U.S. not to politicize trade rows

BEIJING (Reuters) - The United States should resolve trade rows with China through dialogue on an equal footing and should not politicize them, a senior Commerce Ministry official said in remarks published on Monday.

The warning by Chen Deming came a day after Finance Minister Xie Xuren said legislation being considered by the U.S. Congress could seriously harm trade ties with China.

The comments put down a marker for two rounds of cabinet-level talks in Beijing this week. On Tuesday, U.S. Commerce Secretary Carlos Gutierrez and Trade Representative Susan Schwab take the lead, followed on Wednesday by Treasury Secretary Henry Paulson.

In an interview with the official China Daily, Chen expressed concern that the trend towards politicizing trade and economic issues could mount as the November 2008 U.S. presidential election approaches.

America's record trade deficit with China will be high on the agenda this week. Washington wants Beijing to open its market wider to foreign firms and let the yuan rise faster.

Chen, a newly appointed vice-minister who is in line to take over the top job, said U.S. media coverage of issues such as the exchange rate, food safety and intellectual property rights had been "hindering the normal development" of two-way ties.

He said growing economic independence meant the two countries had more and more common interests that called for cooperation.

"Thus, the two sides should clarify the responsibility each side should shoulder, face and resolve structural problems in the economy, and strengthen dialogue and communication," he told the paper.

"We should avoid unreasonably and unilaterally blaming the other side," he added.

(Reporting by Alan Wheatley, editing by Ken Wills)