U.S. AND CHINA TO PURSUE PROGRESS IN TRADE RELATIONS IN 1997
(Says Commerce Asst. Secretary Vickery)
By Michael Greenwald
USIA Staff Writer

Washington -- It is in the best interest of the United States and China to continue in 1997 the kind of bilateral dialogue currently underway to address outstanding bilateral trade and investment issues, according to a Department of Commerce official.

Raymond E. Vickery, Jr., assistant secretary for trade development in the Department of Commerce International Trade Administration and chair of the U.S.-China Business Development and Industrial Cooperation Working Group, spoke Jan. 29 on trade and investment in China.

Vickery reviewed a number of outstanding issues, such as China's WTO accession, intellectual property rights and Hong Kong's conversion, stating that "progress is being made" in ongoing negotiations even though "we haven't reached the point where we want to be" on these issues.

From January to October, 1996, U.S. exports to China were down 4 percent compared to last year, while imports were up 11 percent. Over this period U.S. imports from China were about five times U.S. exports, Vickery said, a ratio the U.S. finds "unacceptable."

This ratio shows that China has a strong industrial policy which is "skewing that market," Vickery said, adding that "we want China's market to work more freely" as a prerequisite to its WTO accession.

In addition to the issue of improved market access, the United States wants to see progress on easier access for U.S. agricultural goods, removal of rules which restrict trading rights in China, and the removal of tariffs and non-tariff barriers in terms of the question of China's WTO accession, he said.

1996 was a difficult year in U.S.-China trade relations, Vickery said, with contentious problems in textiles, IPR protection, improper transfer of strategic technologies and the elections in Taiwan. However, he said, "we pulled out of this valley" through high-level engagement between Chinese and U.S. officials, which will continue with Vice President Gore's upcoming visit to China and the expected exchange of presidential visits.

The United States and China are also pursuing solutions to outstanding trade problems through engagement at the working level. Vickery said there are 12 subgroups studying U.S.-China trade on a sector-by-sector basis in such areas as commercial law, trade and investment, business operations issues, and major project approval. The Commerce Department also plans to open a U.S. Commercial Center in Shanghai in April, 1997.

The Department of Commerce "must stand shoulder to shoulder with U.S. business in carrying out trade relations with China to achieve greater market access" there, in part to maintain America's growing employment and standard of living, Vickery said. The Asia-Pacific region is the fastest growing in the world and has surpassed Europe as America's largest regional trading partner.