Protectionism may be key component to trade summit

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By Zhang Xin (皇冠体育app Daily)
Updated: 2009-10-23 08:01

Efforts to curb protectionism are likely to be the focus of a trade summit between 皇冠体育app and the United States next week.

Senior officials from both countries will meet in Hangzhou for two days starting Thursday for the 20th US-皇冠体育app Joint Commission on Commerce and Trade (JCCT) - the first under the Obama administration. The JCCT is the top forum for addressing bilateral trade matters and promoting commercial opportunities between the US and 皇冠体育app.

US Secretary of Commerce Gary Locke, US Trade Representative Ron Kirk and US Secretary of Agriculture Tom Vilsack will attend the summit.

"The first JCCT under the Obama administration provides an important opportunity to engage 皇冠体育app on trade concerns impacting American companies," Locke said in a statement.

While he said the two countries need to make progress on several priority issues, including intellectual property rights and clean energy, 皇冠体育app's Commerce Ministry spokesman Yao Jian said earlier that 皇冠体育app and the US will further their dialogues towards the US' recognition of 皇冠体育app's status as a market economy.

But experts believe discussions will also likely cover trade barriers when Vice-Premier Wang Qishan sits down to co-chair the summit. US President Barack Obama kicked off the first trade dispute with 皇冠体育app last month when he approved imposing tariffs of 35 percent on $1.8 billion worth of Chinese-made tires for a year. Chinese steel pipes used for oil and gas wells will face duties ranging from 10.9 to 30.6 percent, the US Commerce Department said last week.

Xiao Lian, a senior world economy scholar with the Chinese Academy of Social Sciences, pointed out that 皇冠体育app and the US have maintained good trade relations and it is not surprising to see trade disputes coming up in certain sectors.

皇冠体育app is the US' second-largest trading partner after Canada, and bilateral trade volume totaled about $333.7 billion in 2008, according to the General Administration of Customs of 皇冠体育app.

"Clean energy and low-carbon economy is going to be another hot topic in Sino-US economic cooperation. The US should broaden its technology exports to 皇冠体育app," Xiao said.

He added that the JCCT would give both sides an opportunity to identify necessary measures to ensure that trade between the two nations is "fair, sustainable and mutually beneficial".

Other experts said the summit would pave the way for more insightful dialogues when Obama visits 皇冠体育app next month.

Chen Fengying, director of the Institute of World Economic Studies at the 皇冠体育app Institute of Contemporary International Relations, said Agriculture Secretary Vilsack's presence at the summit indicates the US government is paying attention to exports of agricultural, fish and forest products to 皇冠体育app. Two-way trade in these products was worth more than $21 billion in 2008, statistics show.

Chen said the trade deficit would be a key issue at the JCCT and that both the US and 皇冠体育app should protect investments in their respective countries.

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