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Workshop of the world grows into a formidable trading giant

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STANDING NEAR a squat metal fabricating machine on a recent visit to China, United States Undersecretary of Commerce for International Trade Grant Aldonas praised the might of American manufacturers.

'The machines you saw outside are terrific examples of what American companies are best at. We produce the capital equipment that is essential to manufacture the precision equipment and manufactured goods for the world market,' he said.

Washington wants China to buy more machines like the US$500,000 punch press made by New York-based company Strippit. After a record monthly trade deficit with China of US$14.2 billion in June, the US is pushing Beijing to reduce the gap.

But mainland companies want to sell more of everything from clothes and toys to appliances to US consumers and the rest of the world. At the same time, Chinese firms are gathering the know-how to produce their own brands of advanced equipment.

China has become a trading power to be reckoned with, causing other countries to view its massive potential market with hope - and its cheap products with fear.

'It's hard to export to China. They make everything,' said Ricardo Blazquez, head of an office in Shanghai set up by the Spanish city of Valencia to promote exports to the mainland.

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