U.S. and China Continue to Disagree Over Trade Imbalance

Chen Wenjing, Vice President of the Chinese Academy of International Trade and Economic Cooperation, has urged the U.S. to give up its "Cold War" attitude toward China, referring to a ban to deny technology to the Chinese military, while U.S. Trade Representative Rob Portman announced the Establishment of a task force to ensure better trade compliance by China.

"The United States needs to abandon its discriminatory policy and give up its Cold Water mentality by removing the restrictions on high-tech exports to China," Wenjing said. "It's known to all that the United States curbs exports and selectively sells only Boeing aircraft, soybeans and cotton to China, and that this is also discriminatory as it doesn't apply the same policy to other countries."

At a news conference on Tuesday, Portman, noted concern over China's enforcement of intellectual property rights and the lack of openness of its markets to U.S. good and services, referring to restrictions on specific foreign investments and trade in financial services.

China "lacks equity, durability and balance in the opportunities it provides," said Portman. "This disparity is due in part to China's failure to honor certain commitments, including its failure to enforce intellectual property rights, its protection and support for certain domestic industries, and its refusal to fulfill certain market opening commitments."

Portman plans to establish a chief counsel for China trade enforcement which will lead a task force to ensure better trade compliance by China.

The National Association of Manufacturers (NAM) applauded this new policy approach in a statement released yesterday. "Establishing a Chief Counsel for China Trade Enforcement is a great idea and sends a strong message to China about fully complying with its international obligations," according to NAM President John Engler. "It's an important development to have Ambassador Portman's frank acknowledgment that China's actions have contributed considerably to our bilateral trade imbalance."