TEXT: SEC. DALEY 12/18 REMARKS ON U.S.-CHINA TRADE RELATIONS
(China must do more to open its markets to U.S. companies)Washington -- China must do more to open its markets to American companies, according to U.S. Secretary of Commerce William Daley.
Daley's call for greater access to Chinese markets came at the conclusion of the 12th U.S.-China Joint Commission on Commerce and Trade (JCCT) December 18.
He cited instances where Chinese rhetoric about opening markets has not been matched by Chinese performance.
"We disagree with China's definition of an open market. While you said the power generation market is open to U.S. suppliers, your delegation says all domestically-funded projects are closed to foreign companies," Daley said.
"But the vast majority of power projects in China are domestically-funded. Therefore, you exclude American suppliers from a huge market.
"This is not what I would call an open market," Daley said.
"We need to see deeds, not words," Daley emphasized. "We need to see real gestures that China is committed to balancing our trade and economic relationship."
Following is the text of Daley's remarks, as prepared for delivery:
(begin text)
Remarks by
Secretary of Commerce William M. Daley
12th U.S.-China Joint Commission on Commerce and Trade
Closing Plenary Session
Washington, D.C.
December 18, 1998Let me first thank Minister Shi and all who have made these meetings possible, especially the delegates from both sides, and the co-chairmen of the working groups. I also appreciate the business people who have played such a major role in our discussions. They probably have more at stake in these meetings than anyone.
Over the past two days, we discussed many tough issues. And we talked frankly about them. In closing these meetings, I want to highlight what we have done.
First, Mr. Minister, thank you again for the list of projects for rebuilding and expanding China's infrastructure. The numbers are impressive. I know our American companies will want to review it. We will make sure they have the opportunity to do so. They want very much to do more business in China.
As fierce competitors, I hope they will be very successful in winning new contracts.
However, Mr. Minister, I am disappointed that the list does not include more domestically-funded projects. Our firms want to be suppliers for all projects in China. I welcome your suggestion that we agree on a joint list of projects. This would be useful for my trade mission to China early next year.
As you know, market access was high on the agenda for these meetings. So I am pleased that we agreed to meet early next year to discuss the role of CDMA technology, in modernizing China's telecommunications network. We also welcome China's announcement that your power generation, and GSM telecommunications equipment markets, remain open to U.S. companies.
But to be honest, we disagree with China's definition of an open market. While you said the power generation market is open to U.S. suppliers, your delegation says all domestically-funded projects are closed to foreign companies. But the vast majority of power projects in China are domestically-funded. Therefore, you exclude American suppliers from a huge market.
This is not what I would call an open market.
You also say that our concerns about China's new market access restrictions are based on "misunderstandings." Well, Mr. Minister, as I said yesterday, hearing 100 times is not as good seeing a thing one time. We need to see deeds, not words. We need to see real gestures that China is committed to balancing our trade and economic relationship.
Second, Mr. Minister, you said the U.S. government should be more involved in helping our companies in China. I agree. So I am delighted with the decision to place a full-time U.S. trade finance officer in Beijing. This should help level the playing field for some of our companies.
Third, is progress on export controls. We are world leaders in many technologies, as you know. We want very much to increase our high-tech exports to China. But as we have always said, it will not be at the expense of our national security. So by continuing to talk about these issues, by recognizing what is doable, and what is not, we are making good progress in several key areas.
These include advances on developing plans to increase the number of end-use visits. These verify that U.S. exports are being used for purposes stated at the time of export. Cooperation on this issue will help sustain U.S. high-tech exports.
In addition, our discussions on issuing export certificates for a broader range of dual-use products is a very positive step. And we agreed to hold more export control seminars in an effort to expand overall U.S.-Chinese cooperation.
Fourth, and finally, we had good discussions on commercial law and intellectual property rights. We moved ahead on enforcing arbitration awards. And we agreed to hold more legal seminars.
Clearly, all of the understandings we reached -- including others on standards and business development -- show how far we have come in the relationship. But there is much more that must be done in the weeks and months ahead if we are to reduce our ballooning trade gap with China.
And I hope you and your team will be committed to addressing that.
Our task now is to implement the understandings we have reached. And we must continue to work out the tougher issues. In the year ahead, Mr. Minister, I can assure you we will work very, very hard to make that so. I trust China will do the same.
Again, thank you all for coming. Have a safe trip home.
(end text)
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