A senior US trade official said that he is optimistic about
Sino-US trade relations but also realistic about the challenges
they face.
"Our economies are growing increasingly interdependent every
day. We meet more frequently with our Chinese counterparts and I
believe that both sides understand the importance of making this
relationship work," Deputy US Trade Representative Karan Bhatia
told scholars and students at the Shanghai Institute of Foreign
Trade yesterday.
Bhatia is scheduled to arrive in Beijing today for talks with
his Chinese counterparts ahead of the US-China Joint Commission on
Commerce and Trade (JCCT) meeting to be held in Washington DC early
next month.
Bhatia said China deserves credit for making substantial reforms
as part of its WTO commitments, and that US policy must be
reoriented to deal with China.
"As mature trading partners, there is a long list of important
issues on which we believe the US and Chinese governments need to
make more progress," he said.
"Market access, the protection of intellectual property rights,
subsidies and transparency are some of the main issues."
Bhatia said the Bush administration is committed to using
cooperative bilateral mechanisms such as the JCCT to the fullest
extent possible to resolve bilateral trade and economic issues. But
he also believes it is natural for the two countries to have their
differences on a large number of issues.
Those, according to Bhatia, need to be addressed through such
means as WTO dispute settlement proceedings. He refused to name
specific issues in which the US thinks it has a strong case at the
global trade body level.
Bhatia dismissed worries that a more vigorous enforcement effort
would upset the bilateral relationship, or even lead to a trade
war.
"My answer is no. Trade wars arise when you don't have dispute
settlement mechanisms," he said.
Bhatia also warned about the threat of protectionism in both
countries.
"In the US, there are those on both sides of the political
spectrum who seek to close down the US market to China," he
said.
In recent months, legislation has been mooted in the US
including proposals to impose high tariffs on Chinese imports
unless China revalues its currency. If passed, they could have a
serious adverse effect on Sino-US trade and investment.
In China, calls have been made for new policies and regulations
to restrict market access to foreign firms, particularly in the
services sector. There have also been increased demands for
protection and other forms of government support for domestic
companies.
Bhatia said the US is looking forward to overcoming these
challenges, and creating even stronger commercial and political
ties in the years to come.
"If this is to be the Pacific century, both China and the US
will play important roles."
(China Daily March 22, 2006)