|
China promises to punish US on wto complaints { April 10 2007 } Original Source Link: (May no longer be active)
http://www.ft.com/cms/s/79c28df2-e751-11db-8098-000b5df10621.htmlhttp://www.ft.com/cms/s/79c28df2-e751-11db-8098-000b5df10621.html
China hits out as US launches trade cases
By Richard McGregor in Beijing and Eoin Callan in Washington
Published: April 10 2007 12:09 | Last updated: April 11 2007 01:50
China on Tuesday reacted harshly to a US decision to take it to the World Trade Organisation over piracy and copyright protection, saying it would “seriously damage” bilateral co-operation and harm business ties.
The statement from China’s commerce ministry followed the announcement by the US that it was lodging two cases with the WTO – on intellectual property rights protection and market access for US movies, DVDs, books and music.
The decision to file the cases amid pressure from Congress and Hollywood represents an ambitious attempt by the US to force politically sensitive changes to China’s tight media controls.
The response struck a significantly more combative tone than previous Chinese reactions to other trade disputes with the US, which appeared to accept that some tensions were part of the rough and tumble of being a global trading power.
Wang Xinpei, a commerce ministry spokesman, said the WTO action was “against the consensus reached between the two countries’ leaders on developing bilateral trade relations and properly handling trade problems”. He added: “China expresses great regret and strong dissatisfaction at the decision of the United States to file WTO cases against China over intellectual property rights and access to the Chinese publication market.”
The Chinese claim that the litigation violates a consensus between the two countries contrasts sharply with the Bush administration’s insistence that the actions are a sign of a maturing trade partnership. A US trade official said: “We have worked with China for many, many months to resolve our concerns about China’s compliance with its WTO obligations and we have acknowledged China’s progress in this area. Fortunately, we have the WTO to sort out tensions in a rational manner.”
Beijing’s stinging response bodes ill for the second meeting in May in Washington of the bilateral “Strategic Economic Dialogue”, set up by Hank Paulson, Treasury secretary, as a forum for top-level consultation.
The former chief executive of Goldman Sachs has sought to cultivate a consensual alliance with the Chinese leadership that builds on ties he developed as head of the investment bank.
The goal of that dialogue includes persuading China to open its financial services market and embrace reforms that would help address the record $233bn annual bilateral trade deficit with the US.
Trade data in Beijing showed a sharply below-consensus surplus for China of $6.87bn for last month. The March figure compared to a total surplus of $40bn for the first two months of the year. Economists said the March figures were an anomaly and did not represent a slowdown in the growth of China’s surplus. Stephen Green, of Standard Chartered in Shanghai, said the smaller figure was probably a result of exporters bringing orders forward out of concern about plans to cut export tax rebates following a separate US challenge at the WTO. Even with a smaller March number, the surplus for the first quarter of 2007 was $46.5bn, double that for the same period last year.
Goldman Sachs, in a note to clients, said the March surplus would maintain pressure on the renminbi to appreciate, which the bank said was a “more efficient” way to tackle imbalances.
Copyright The Financial Times Limited 2007
|
|
