China urged to avoid trade protection
U.S. Chamber of Commerce President Thomas Donohue urged the Chinese government to resist imposing trade barriers as a way to improve China's deteriorating trade-based economy during the global meltdown.
In a Jan. 13 speech delivered to the American Chamber of Commerce in Beijing, Donohue said it's important for China to 'reduce in-country barriers that increasingly establish one set of rules for domestic firms and another set of rules for U.S. and other foreign businesses.
'Enhancing participation by U.S. firms in sectors such as financial services, telecommunications, distribution and logistics, and direct-to-consumer services would help China achieve its goal of moving away from export-led growth, and toward consumption-led growth,' he said.
China's customs administration reported Tuesday that December exports fell 2.8 percent to $111.2 billion from the same month last year, after a 2.2 percent decline in November. The Chinese government remains concerned about potential internal unrest due to a recent rise of layoffs in the country.
China's customs data also showed that the country's monthly trade surplus with the United States in December fell by 9.5 percent from a year earlier to $12.4 billion. However, the total 2008 surplus with the United States rose 4.6 percent to $170.8 billion, threatening to raise tensions with the incoming Obama administration and Democrat-led Congress, the Associated Press reported.
AP also reported that China has trimmed export taxes and is attempting to reduce the country's reliance on exports through the recent introduction of a 4 trillion-yuan ($586 billion) economic stimulus package which focuses on increased domestic consumption.
Donohue pointed out both countries should not lose sight of the positive changes gained through enhanced U.S.-China trade in recent years.
'Our relationship has been defined by pragmatism, and it has served us well,' he said. 'It allows us to bridge ideological differences and work together despite periods of tension and areas of disagreement ' Despite current economic challenges, American business will continue to show great interest in China's extraordinary market — as long as the opportunities are real, the rules are fair, and the barriers are low.'
China urged to avoid trade protection
