Commerce Secretary Urges China to Change

By FOSTER KLUG Posted 15 March 2006 @ 04:55 am EET     Print     Reprint     E-Mail     Comments

WASHINGTON (AP) - Commerce Secretary Carlos Gutierrez said Tuesday that China's failure to change its economic policies plays into the hands of American lawmakers eager to "build protectionist barriers around the U.S. market."

Gutierrez said the U.S.-China trade relationship has become bogged down by a $202 billion trade deficit and by widespread piracy of U.S. products.

"If our economic relationship is to stay afloat, China needs to lighten the load by carrying out reforms and delivering results," Gutierrez told a crowd gathered for a luncheon sponsored by the Asia Society.

Beijing, he said, must assume responsibility for strengthening the same international trade system that has boosted its impressive economic growth.

As the White House prepares to welcome Chinese President Hu Jintao in April, U.S. officials are increasingly voicing misgivings over what they call unfair Chinese economic practices that make it impossible for American workers to compete.

Gutierrez noted Washington's rising level of trade tension, saying that "when China fails to act, it only strengthens those who want to build protectionist barriers around the U.S. market. That's the last thing we need."

Without better economic reform from China, he added, U.S. officials "may be forced to reassess our bilateral economic relationship."

Lawmakers in recent months have introduced several bills that reflect a growing worry over China's booming economy and its influence on American workers, including legislation that would revoke normal trade relations with China.

Last year, China's state-controlled CNOOC Ltd. gave up an $18.5 billion takeover bid for Los Angeles-based oil company Unocal Corp. after critics complained the deal might jeopardize U.S. security.

China has said repeatedly that it hopes trade issues between the two countries will not be "politicized."

In his speech Monday, Gutierrez described massive piracy of copyrighted American products in China, where, he said, theft of music and movies was normal and legitimate sales the exception.

For example, he said, 17 of 20 music recordings sold in China two years ago were pirated.

"Imagine going to the grocery store and watching 17 out of 20 customers shoplifting items from the shelves and walking out of the store without paying," Gutierrez said.