SOURCE: The US-China Business Council

The US-China Business Council

June 16, 2010 10:10 ET

USCBC's Frisbie Testifies on China's Trade and Industrial Policies

"US Companies Want to See the Problems Addressed With Specific Solutions, Not Sanctions or Legislation That Would Disrupt the Relationship"

WASHINGTON, DC--(Marketwire - June 16, 2010) -  In testimony before the House Committee on Ways and Means today, the US-China Business Council (USCBC) urged the administration, Congress, and business leaders to send a strong overall message to China's top leadership that although the US business community remains committed to the China market, developing problems and troubling trends must be addressed.

USCBC member companies have identified problems with China's innovation policies, government procurement rules, inadequate intellectual property rights protection, market access and investment restrictions, and discriminatory product standards.

"Our member companies are committed to the China market but have serious concerns about policy trends in China that unfairly favor domestic companies," USCBC President John Frisbie said. "US companies want to see the problems addressed with specific solutions, not sanctions or legislation that would disrupt the relationship."

"America's commercial relationship with China is far bigger and more complex than ever," continued Frisbie. "China is now our third-largest export market for goods, after Canada and Mexico. The first thing we need to do is upgrade our bilateral engagement structure to reflect that. The Obama administration is on the right path in this regard, and we need to encourage them in this process.

"If there were a single agency or official that controlled China's trade and industrial policies, it would be easy to structure and target our advocacy efforts. Unfortunately, the bureaucratic owners of these policies are many and diffuse throughout the PRC government -- and often not well-coordinated. We therefore need to pursue continuous, sustained bilateral dialogue and expand it to include the range of senior officials and agencies that devise and impact China's trade and industrial policies," said Frisbie.

"This is a meaningful market for US companies and, yes, for American jobs," continued Frisbie. USCBC estimates that China's total market size for US companies is $150 billion, if US exports of goods and services to China and Hong Kong are combined with sales in China of US affiliates operating there.

"There are plenty of problems in the commercial relationship with China, but the reality of the numbers tells us why, as one USCBC director said during our board meeting two weeks ago today, 'it is worth the effort' needed to address the array of issues.

"Our bilateral commercial relationship with China plays an important role in the recovery and future growth of the US economy," concluded Frisbie. "It will be difficult to meet President Obama's goal of doubling US exports by 2014 without it. China is the one export market for US products over the past decade that has consistently met the 15 percent annual growth required to achieve the president's goal."

Frisbie's written testimony as prepared for submission is available at:
http://www.uschina.org/public/documents/2010/06/uscbc_written_testimony.pdf 

Frisbie's oral testimony is available at: http://www.uschina.org/public/documents/2010/06/uscbc_oral_testimony.pdf 

The US-China Business Council (USCBC, www.uschina.org) is a private, nonpartisan, nonprofit organization of roughly 220 American companies that do business with China. For nearly four decades, USCBC has provided unmatched information, advisory, advocacy, and program services to its membership. Through its offices in Washington, DC; Beijing; and Shanghai, USCBC is uniquely positioned to serve its members' interests in the United States and China.

Contact Information

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