December 15, 2007 (LPAC)-- China is launching a new drive for enhanced research and development, including equipment manufacturing, aviation, and high-tech agriculture. This follows the blunt statement by Chinese Vice Premier Wu Yi this week, that if the U.S. wants to lower the trade imbalance with China, it should "relax its export control over hi-tech products for civilian use in China." This would allow more high-tech exports from the U.S. to China, now restricted under the excuse of potential "dual use" in military areas, and would thus lower the U.S. trade deficit. Wu Yi's statement came in response to US Finance Secretary Paulson's repeated demands that the only way to address the trade imbalance is for China to raise the value of the yuan.

The new Chinese innovation program includes 30 state-owned and 154 private enterprises, under the direction of China's State Ministry of Science and Technology, the State Council Assets Supervision and Administration Commission (SASAC), and the All-China Federation of Trade Unions. SASAC deputy director Shao Ning said that "Chinese enterprises are getting stronger. Some even threaten the market share of multinationals. So foreign companies are no longer willing to sell technology to us. In such circumstances, independent innovation is crucial to our enterprises," according to Xinhua.