US Trade Representative Criticizes China's WTO Performance
The US Trade Representative, Rob Portman, expressed disappointment at China's performance in fulfilling its World Trade Organisation (WTO) commitments, particularly in areas such as market access and intellectual property rights. Portman urged China to take a more active role in negotiations over agricultural subsidies to salvage the upcoming WTO meeting in Hong Kong. He also highlighted the need for China to provide a level playing field for foreign firms in industries such as motors, insurance, telecommunications, and direct sales.
Key Takeaways:
- The US trade deficit with China is expected to exceed $200 billion this year, almost $40 billion more than last year's record amount.
- Foreign-invested enterprises in China accounted for an estimated 57% of China's exports in 2004 and are expected to increase to at least 60% this year.
- The motor, insurance, telecommunications, and direct sales industries are areas where China is not allowing a level playing field for foreign firms to compete.
- Intellectual property rights remain a major complaint from foreign businesses operating in China.
- Portman reached an agreement with Commerce Minister Bo Xilai to limit the flood of cheap Chinese textiles into the US market.
- US President George W. Bush is expected to arrive on the mainland this week and press for greater market access for American companies and a tougher stance on intellectual property protection.
Statistics:
- Estimated 57% of China's exports in 2004 were made by foreign-invested enterprises.
- Expected increase to at least 60% of China's exports in 2005 made by foreign-invested enterprises.
- US trade deficit with China expected to exceed $200 billion in 2005.
- Increase in US trade deficit with China of almost $40 billion compared to 2004.
Sources:
- US Trade Representative
- Rob Portman's public statement in Beijing
- China Expats: Foreign-invested enterprises in China were responsible for an estimated 57% of China's exports in 2004.